Lloyds puts 20% stake in SJP up for sale

Lloyds Banking Group has announced plans to begin its long awaited sell-off of shares in restricted advice group St James’s Place (SJP), putting a 20% stake in the company up for sale. 

Lloyds said it expected to realise a gain of between £350 million and £400 million from the sale of 102 million ordinary shares in SJP.

Lloyds owns 57% of SJP.

Following the sale of 20%, Lloyds will be left with a 37% holding in SJP and it will not sell any more shares in the firm for at least a year.

Lloyds said the placing reflected its strategy to simplify and focus on its core customer franchise.

Lloyds said it would continue to be supportive of the SJP management team, which will remain unchanged as a result of the sell-off.

Lloyds inherited a 60% stake in SJP when it took over HBOS in 2008.

Last week SJP reported a assets under management had swelled to £34.8 billion in 2012, a 22% increase from 2011. It posted a profit of £76 million.

David Bellamy, SJP chief executive, said the move would benefit shareholders. 

‘Lloyds Banking Group has been a very supportive shareholder of St James’s Place since it acquired a 60% stake through the acquisition of Bank of Scotland, and we look forward to maintaining a strong relationship with them going forward,' he said.

‘At the same time, we believe that increased liquidity in our shares and a broader shareholder base is beneficial to our business and our shareholders.’