LLOY Lloyds Banking Group Plc

TIDMLLOY

RNS Number : 2125E

Lloyds Banking Group PLC

02 November 2015

2 November 2015

SALE OF LLOYDS BANKING GROUP STAKE IN VISA EUROPE

As a member and shareholder of Visa Europe Limited ('VE'), Lloyds Banking Group ('the Group') notes the announcement from Visa Inc regarding the proposed acquisition of VE to create a single global payments business under the Visa brand, and can confirm that it has agreed to sell its shareholding as part of this process.

The Group's share of the sale proceeds will comprise upfront consideration of cash and preferred stock. The preferred stock is convertible into Class A common stock, at a future date, subject to the satisfaction of certain conditions. In addition the Group may be entitled to deferred consideration, contingent on a number of variable factors including performance of Visa post completion of the sale.

The Group expects to report a pre-tax gain for the upfront consideration of approximately GBP300 million on completion of the transaction, which is expected to occur in 2016.

- END -

For further information:

Investor Relations

Douglas Radcliffe +44 (0) 20 7356 1571

Group Investor Relations Director

Email: douglas.radcliffe@finance.lloydsbanking.com

Corporate Affairs

Edward Petter +44 (0) 20 8336 5655

Deputy Group Corporate Affairs Director

Email: ed.petter@lloydsbanking.com

FORWARD LOOKING STATEMENTS

This announcement contains certain forward looking statements with respect to the business, strategy and plans of Lloyds Banking Group and its current goals and expectations relating to its future financial condition and performance. Statements that are not historical facts, including statements about Lloyds Banking Group's or its directors' and/or management's beliefs and expectations, are forward looking statements. By their nature, forward looking statements involve risk and uncertainty because they relate to events and depend upon circumstances that will or may occur in the future. Factors that could cause actual business, strategy, plans and/or results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward looking statements made by the Group or on its behalf include, but are not limited to: general economic and business conditions in the UK and internationally; market related trends and developments; fluctuations in exchange rates, stock markets and currencies; the ability to access sufficient sources of capital, liquidity and funding when required; changes to the Group's credit ratings; the ability to derive cost savings; changing customer behaviour including consumer spending, saving and borrowing habits; changes to borrower or counterparty credit quality; instability in the global financial markets, including Eurozone instability, the potential for one or more countries to exit the Eurozone and the impact of any sovereign credit rating downgrade or other sovereign financial issues; technological changes and risks to cyber security; pandemic, natural and other disasters, adverse weather and similar contingencies outside the Group's control; inadequate or failed internal or external processes or systems; acts of war, other acts of hostility, terrorist acts and responses to those acts, geopolitical, pandemic or other such events; changes in laws, regulations, accounting standards or taxation, including as a result of further Scottish devolution; changes to regulatory capital or liquidity requirements and similar contingencies outside the Group's control; the policies, decisions and actions of governmental or regulatory authorities in the UK, the European Union (EU), the US or elsewhere including the implementation of key legislation and regulation; the ability to attract and retain senior management and other employees; requirements or limitations imposed on the Group as a result of HM Treasury's investment in the Group; actions or omissions by the Group's directors, management or employees including industrial action; changes to the Group's post-retirement defined benefit scheme obligations; the ability to complete satisfactorily the disposal of certain assets as part of the Group's EU State Aid obligations; the provision of banking operations services to TSB Banking Group plc; the extent of any future impairment charges or write-downs caused by, but not limited to, depressed asset valuations, market disruptions and illiquid markets; the value and effectiveness of any credit protection purchased by the Group; the inability to hedge certain risks economically; the adequacy of loss reserves; the actions of competitors, including non-bank financial services and lending companies; and exposure to regulatory or competition scrutiny, legal proceedings, regulatory or competition investigations or complaints. Please refer to the latest Annual Report on Form 20-F filed with the US Securities and Exchange Commission for a discussion of certain factors together with examples of forward looking statements. Except as required by any applicable law or regulation, the forward looking statements contained in this announcement are made as of today's date, and Lloyds Banking Group expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward looking statements.

This information is provided by RNS

The company news service from the London Stock Exchange

END

DISEAAFAEDSSFFF

(END) Dow Jones Newswires

November 02, 2015 07:39 ET (12:39 GMT)

Lloyds Banking (LSE:LLOY)
Historical Stock Chart
From Apr 2024 to May 2024

Lloyds Banking (LSE:LLOY)
Historical Stock Chart
From May 2023 to May 2024