LONDON-- Lloyds Banking Group PLC (>> Lloyds Banking Group PLC), which is 40%-owned by the U.K. government, said Wednesday that it has agreed the sale of a portfolio of leveraged loans to Goldman Sachs Group Inc. (>> Goldman Sachs Group Inc) subsidiary ELQ Investors II Ltd for 254 million pounds in cash.
-A further GBP2 million payable within 6 months if certain financial conditions are met; transaction is part of the Group's continued non-core asset reduction strategy.
-Portfolio, which has gross assets of GBP283 million, predominantly comprises U.K. based assets in a range of sectors including manufacturing and retail.
-Portfolio generated profits of GBP11 million in the year to Dec. 31 2012.
-The transaction will result in a small core tier 1 increase for the group; proceeds will be used for general corporate purposes.
-The transaction is expected to complete by the end of September 2013.
-Shares closed Tuesday at 74 pence valuing the company at GBP52.64 billion.
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