BRITISH bank Lloyds Banking Group today announced that it is selling off its Spanish retail banking operations to Banco Sabadell, in return for a 1.8 per cent stake in the Spanish bank.
Lloyds, which received a UK Government bailout during the financial crisis, will receive 53.7 million shares valued at £72m and an additional £17m in cash within the next five years dependent on the mortgage book margins.
The disposal of the business will lead to a £250m loss on Lloyds’ accounts.
The group – which plans to divest over 600 UK branches via a stock market listing after a sale to the Co-operative Bank fell through – will still retain its Spanish corporate banking unit.
The current staff employed by Lloyds in Spain will move across with the subsidiaries on sale.