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Lloyds sells £344m Standard Life Aberdeen stake

Lloyds sells £344m Standard Life Aberdeen stake

Lloyds Bank has ditched its remaining 3.3% stake in Standard Life Aberdeen (SLA) as a dispute over a £109 billion mandate rumbles on behind the scenes.

According to a stock exchange announcement, Lloyds netted £344 million from the disposal, which represented 98 million shares at a price of 352.5p each.

The sale came at a 3.2% discount to the price SLA's shares closed at on Thursday night. 

Relations between Lloyds and SLA have deteriorated since the bank's decision to pull a £109 billion mandate from the asset manager earlier this year. 

Last month SLA said it disputed the decision and was locked in talks with Lloyds to find a resolution. 

Meanwhile Lloyds has put the mandate on the market, with JP Morgan Asset Management, BlackRock, Schroders and Goldman Sachs Asset Management involved in a bid war for the lucrative contract. 

Lloyds inherited a 9.9% stake when Aberdeen bought its asset management business, Scottish Widows Investment Partnership, back in 2013. 

The interest was diluted to 3.3% following last year's merger between Standard Life and Aberdeen. 

Commenting on the disposal, Lloyds said: '[The holding] supported the partnership agreements that were previously in place with Standard Life Aberdeen but given notice has been served for these agreements, and we are not a natural long term holder of equities, we have now made the decision to sell the stake.'

 

 

 

 

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