Wealth management firm St James’s Place has taken an optimistic view on the sale by government-owned Lloyds Banking Group of 20 per cent of the company’s shares, saying the move will boost liquidity and benefit investors.
David Bellamy, chief executive of SJP, said in a statement that “increased liquidity” alongside “a broader shareholder base” would be beneficial both to the business and shareholders.
Mr Bellamy spoke effusively of the firm’s past relationship with the state-backed bank, which he said had been “a very supportive shareholder” since it acquired its near 60 per cent stake through the acquisition of Bank of Scotland.
He added that in spite of the sale the company was looking forward to “maintaining a strong relationship with [Lloyds] going forward”.
Yesterday Lloyds put 102m of its shares in SJP up for sale, leaving it holding 37 per cent of the company shares.
According to a source close to the situation, the stock was fully placed within an hour. Lloyds raised £520m from the placement and netted a gain of around £400m, which was at the top end of analyst estimates.
This morning, the bank revealed it had entered a one-year lock-in agreement which it will keep its remaining 37 per cent stake in the company.
