Lloyds bank has announced an agreement to sell its Spanish retail operations (including Lloyds Bank International S.A.U and Lloyds Investment España SGIIC S.A.U) to Banco Sabadell (release). The total assets are valued at £1,517m as of 31 March, with most assets comprised of customer lending.
The bank will receive shares equivalent to 1.8 per cent of Banco Sabadell's share capital, which Lloyds will retain for at least two years. The total consideration will be payable in shares and cash, with Banco Sabadell delivering 53.7m shares valued at £72m. An additional cash consideration of £17m may be payable in the next five years depending on mortgage book margins.
The sale is in line with the Group's strategy of rationalising its international presence and ensuring best value for shareholders.