Lloyds Banking Group Plc (LLOY) has decided to take over of £3.7 billion UK residential mortgage portfolio of Tesco Personal Finance Plc. Over 23,000 mortgage customers will be transitioning from Tesco Bank. The portfolio is expected to generate excess returns to Lloyds Group compared to current opportunities.
The £3.8 billion purchase price of the portfolio represents a 2.5% premium over gross book value and is proposed to be funded by internal accruals.
The legal title of the portfolio will be transferred by March 2020.
On 3rd September 2019, at the time of writing, GMT 11.46 AM, LLOY shares were quoted at GBX 49.37, down 0.95 point or 1.89% compared to the previous day closing price.