The financial conglomerate said that the sale will simplify the group operations and allow it to concentrate on its core customer franchise.
Selling price of the shares has not been determined yet, however it is expected that it would fetch between £350 and £400m for the bank.
Following disposal of the aforesaid stake, the banking group will hold nearly 37% of St James’s Place issued share capital, while the earnings from the sale will be used for general corporate purposes.
It has also agreed to support the St James’s Place management team, which will remain unchanged as a result of the placing.
The sale will boost Lloyds Banking Group core tier 1 capital by nearly £600m, equivalent to an almost 20 basis points benefit to its core tier 1 capital ratio.
St James’s Place offers wealth management services to individuals, trustees and businesses and serves nearly 140,000 wealth management clients and £34.8bn in funds under management.
