Lloyds Banking Group is to sell its Insight Investment business to Bank of New York Mellon, it has been announced.
The deal, which is worth USD 386 million, is expected to be completed in the fourth quarter of the year.
A cash payment of USD 329 million will be made by Bank of New York Mellon, with the remainder being paid in the form of an equity consideration.
Included in the sale will be Insight’s external fund management operation, which oversees assets worth around GBP 80 billion for a number of pension schemes, intermediaries and third party distributors.
“We believe Insight is better able to focus on developing its specialist external franchise outside the group,” says Jo Dawson, wealth and international director of Lloyds Banking Group.
Earlier this month, the bank – which is 43% owned by the taxpayer – announced a first-half loss of USD 6.76 billion, down from a profit of USD 4.73 billion in 2008.
D.C.