Loyds Banking Group Sells private equity business to Coller Capital- Cavendish Square Partners LP
Lloyds Banking Group (LBG) has agreed to sell its private equity business, earning LBG £332 million in cash for transferring the 40 investments held by its Integrated Finance unit to a new joint venture with Coller Capital in which the bank will hold a 30 percent stake.
Lloyds will retain a stake of about 30 percent in a new joint venture called Cavendish Square Partners LP. “This deal will ensure that we share in any future upside in our investments,” Lloyds Executive Director Truett Tate said in the statement. “The deal with Coller, a leading private equity investor, provides the investee companies with stability and support over the period ahead.”
The 40 company stakes, held through its Bank of Scotland Integrated Finance unit, will be transferred to a venture called Cavendish Square Partners LP, 70%-owned by private equity investor Coller Capital. Lloyds will hold a 30% stake in Cavendish.
Coller’s cash consideration values the portfolio at £480 million, Lloyds said, a small premium to book value. The holdings include stakes in well-known U.K. brands such as Vue cinemas, fitness club chain David Lloyd and shirt retailer TM Lewin.
The sale had been well flagged in the press and was expected to value the portfolio at around GBP500 million. Lloyds said the transaction wouldn’t be material to its earnings.
“Through this transaction, we are crystallizing value in these investments whilst retaining an interest in the investee companies with which we have had positive relationships for several years,” said Truett Tate, group executive director of Lloyds’s wholesale division.
“This deal will ensure that we share in any future upside of our investments. We believe that the deal with Coller, a leading private equity investor, provides the investee companies with stability and support over the period ahead,” he said.
Lloyds said the deal is in line with the group’s strategy of selling assets which are not core to its operations and that over the last 12 months it has sold six businesses, raising over 750 million pounds.
You may also be interested in:
- America’s 25 Best Companies To Interview For A Job in 2016 Job interviews can be nerve-wracking experiences, but some employers known for providing job seekers with a welcoming, transparent, and efficient interview experience. Which employers are […] Posted in CEO Insider
- Meet The Top 8 Highest-Paid Women CEOs in America, 2015 Unsurprisingly, the top-paid woman on the ranking is Oracle Corp.'s Co-Chief Executive Officer Safra Catz, who made $53.2 million last year, according to Equilar 100 list. The 2nd woman on […] Posted in Rankings, Education
- America’s 25 Best Cities For Retirement In 2014: Retirement-Friendly Destinations If you're looking for a retirement-friendly destination to spend your golden years, Forbes magazine has compiled a list of the 25 best cities in America to retire. So, what makes a city a […] Posted in Rankings
- Ten Countries Where Both Facebook And Twitter Are Losing Active Users Out of the world's total population of around 7.4 billion, there are currently over 3.5 billion internet users around the world. Out of which 317 million log onto Twitter at least once a […] Posted in Rankings
- What Could You Do If Your Accounts Receivable Was Insured? You know that as a CEO, you are chief steward of your company’s resources. One of your biggest, if not the biggest, asset on your balance sheet is likely to be your accounts receivable. […] Posted in Leadership
- New Study Says Business Leaders Gain Corporate Reputation via Social Media, but They can do More Think about how you start each and every day. What’s the first thing you do? How about while you wait in line for coffee? Kill time before starting a business meeting or boarding a plane? […] Posted in Growth Leaders
As founder and editorial director of the CEOWORLD magazine, Amarendra Bhushan is an extensively kudized author, journalist, and internationally syndicated columnist. In 2008, he launched The CEOWORLD magazine, a site that quickly became one of the most widely-read, linked to, and frequently-cited media brands on the Internet.