Shareholders of British bank Lloyds TSB on Wednesday backed the takeover of troubled rival HBOS and a recapitalisation that will hand the British government a key stake. Lloyds TSB investors, holding an extraordinary general meeting in Glasgow, Scotland, voted almost 96 percent in favour of the HBOS takeover.
They also voted by a similar majority to approve plans to raise 5.5 bn pounds (6.5 bn euros, 8.3 bn dollars) of new capital. Under the recapitalisation plan, Lloyds will issue 1.0 bn pounds of preference shares to the British government and 4.5 bn pounds in new ordinary shares.
At the same time, HBOS also plans to raise 11.5 bn pounds of fresh capital with support from the state.Lloyds TSB Chairman Sir Victor Blank said the vote was an "important milestone" in the history of the group.
Lloyds TSB agreed in September to buy HBOS in a deal worth 9.8 billion pounds after its target was left facing collapse due to massive exposure to the US subprime mortgage crisis. Competition rules have been waived to allow the takeover to go ahead. HBOS shareholders will vote on the deal in December.
Showing posts with label Lloyd's Bank. Show all posts
Showing posts with label Lloyd's Bank. Show all posts
Wednesday, November 19, 2008
Tuesday, July 10, 2007
Swiss Re, Munich Re in talks with SBI for JV
The UK-based Lloyd’s, the world’s leading provider of specialist insurance services, and leading global reinsurers, Germany’s Munich Re Group and Switzerland’s Swiss Re, are in talks with the State Bank of India (SBI), the country’s largest bank, for partnering in its general insurance foray. The partner is likely to be finalised in the next two months.
A senior SBI official said, “We will be partnering with a foreign reinsurer for our non-life insurance business and discussions are currently on with the world’s leading reinsurers.”
The bank is in the process of appointing an advisor to zero in on a foreign partner, according to sources within. The plans for venturing into general insurance come at a time when the bank is planning to hive off stakes in its life insurance and asset management companies to a separate holding company.
SBI holds 74 per cent stake in its life insurance venture, with Cardif SA of France owning the rest. The life insurance venture would require incremental capital of Rs 600 crore every year.
Read more in The Business Standard article.
A senior SBI official said, “We will be partnering with a foreign reinsurer for our non-life insurance business and discussions are currently on with the world’s leading reinsurers.”
The bank is in the process of appointing an advisor to zero in on a foreign partner, according to sources within. The plans for venturing into general insurance come at a time when the bank is planning to hive off stakes in its life insurance and asset management companies to a separate holding company.
SBI holds 74 per cent stake in its life insurance venture, with Cardif SA of France owning the rest. The life insurance venture would require incremental capital of Rs 600 crore every year.
Read more in The Business Standard article.
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