Lloyds Banking Group PLC (LON: LLOY) sells 77 million shares in St James's Place plc (LON: STJ).
The shares of Lloyds Banking (LSE: LLOY) (NYSE: LYG.US) dropped 2p to 61p during early London trade this morning after the bank said it had raised £450m following the sale of part of its stake in St James's Place (LSE: STJ).
Lloyds said it had sold 77 million shares at 580p and would retain 110 million shares in the FTSE 250 mid-cap.
The shares of St James's Place dived 62p, or 10%, to 578p in response.
Lloyds claimed the disposal would realise a £40m accounting gain and would improve the group's core tier 1 capital by approximately £500m. The bank also said the sale followed the recent "strong performance" of St James's Place's shares.
During March, Lloyds raised £520m by selling 101m million shares in St James's Place.
Lloyds acquired its stake in St James's Place, a financial services group, as part of the ill-fated merger with HBOS during the 2008/9 banking crash.
St James's Place retains a network of financial advisers that serves 140,000 clients and manages some £39bn of customer money.
The mid-cap has seen its shares recover with the wider market during the last few years, with the price rallying 85% during the last twelve months alone.
The disposal ought to support the balance sheet of Lloyds, which at the last count boasted net tangible assets of 54.9p per share.
Of course, whether this share disposal means Lloyds is now a 'buy' and St James's Place is now a 'sell' -- or vice versa -- remains something only you can decide.
However, if you already own shares in Lloyds and/or St James's Place and are looking for buying opportunities outside the financial sector, this exclusive wealth report reviews five particularly attractive possibilities.
Indeed, all five opportunities offer a rich mix of robust prospects, illustrious histories and dependable growth rates, and have just been declared by the Fool as "5 Shares You Can Retire On"!
Just click here for your report -- it's free.
> Maynard does not own any share mentioned in this article.