Lloydstsb shares

ray10

I have some shares that I bought when TSB were just TSB and not part of LLOYDS what happens to them when the TSB is floated again as a separate bank in the next few weeks.

Thrugelmir

You ceased to hold shares in TSB when it merged with Lloyds in 1995.

bowlhead99

Your old TSB shares are not really TSB shares. Once TSB was swallowed up by Lloyds, they stopped existing as a separate entity for the public to own. The shares converted into shares in Lloyds Banking Group. Lloyds then ran LloydsTSB, Halifax, Bank of Scotland as separate brands within the group. But what you own, is the overall group.

So, Lloyds - not you - owns TSB. It was running the TSB branches mixed in with the Lloyds branches as one brand. Then in the last little while, it decided to start running them as two separate brands in preparation for sale. The next stage is that they will offer shares in the 'new TSB' bank, to the public.

What they are offering to the public, is ownership of that 'new TSB' which THEY own. You do not own newTSB. You own Lloyds Banking Group. When Lloyds Banking Group sells some or all of its newTSB shares to the public, it should generate a lot of cash from those people who buy newTSB off it.

It might distribute some of this money to the owners of Lloyds Banking Group (including yourself) as a special dividend; it might retain some of it to help it run the overall LBG business and it might reinvest in growing the business or making acquisitions. What Lloyds Banking Group does with the cash, is up to Lloyds Banking Group to decide. Overall it will act in what it thinks is the best interest of its owners, including you.

But make no mistake, you do not own any shares in TSB. Because TSB hasn't existed for 20 years. You own shares in Lloyds, which took over TSB and would have given you some Lloyds shares in return.

If you are not sure how many Lloyds shares you own (you just keep receiving dividend cheques every so often without realising who is paying you), you can contact their registrar, Equiniti, who will make sure you get the right share certificate for what you currently own. But what you currently own is Lloyds and that will not change when Lloyds sells off part, or all, of TSB.

http://www.lloydsbankinggroup.com/investors/shareholder-info/registrar-services/

PeacefulWaters

bowlhead99 wrote: »

(you just keep receiving dividend cheques every so often without realising who is paying you)

Dividend?

Ah, those were the days.

grey_gym_sock

to put it another way: what they're floating is not TSB, but another bank with the same name.