LONDON -- The shares of Lloyds Banking dropped 2 pence to 61 pence during early London trade this morning after the bank said it had raised 450 million pounds following the sale of part of its stake in St. James's Place .
Lloyds said it had sold 77 million shares at 580 pence and would retain 110 million shares in the FTSE 250 mid-cap.
The shares of St. James's Place dived 62 pence, or 10%, to 578 pence in response.
Lloyds claimed the disposal would realize a 40 million-pound accounting gain and would improve the group's core tier 1 capital by approximately 500 million pounds. The bank also said the sale followed the recent "strong performance" of St. James's Place's shares.
During March, Lloyds raised 520 million pounds by selling 101 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 advisors that serves 140,000 clients and manages some 39 billion pounds 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 12 months alone.
The disposal ought to support the balance sheet of Lloyds, which at the last count boasted net tangible assets of 54.9 pence 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.
The article Lloyds Raises £450m Following Further St. James's Place Share Disposal originally appeared on Fool.com.
Maynard does not own any share mentioned in this article. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.