Preference Share Scheme

RNS Number : 6126J

Lloyds TSB Group PLC

05 December 2008

 



Amendment to HBOS Preference Share Scheme

Further to the publication on 14 November 2008 by HBOS plc ("HBOS") of the circular relating to the proposed Preference Share Scheme of Arrangement (the "Preference Scheme"), at the request of Lloyds TSB Group plc ("Lloyds TSB"), HBOS proposes to amend the terms of the Preference Scheme (the "Amended Preference Scheme") in respect of the £300,000,000 9.25% Non Cumulative Irredeemable Preference Shares and £100,000,000 9.75% Non Cumulative Irredeemable Preference Shares issued by HBOS (the "Relevant Preference Shares"), as detailed below, subject to approval of the Court at the hearing to sanction the Preference Scheme.

In the event that the Preference Scheme becomes effective in relation to either or both classes of the Relevant Preference Shares, Lloyds TSB will make a cash payment to the holders of either or both classes of the Relevant Preference Shares (as applicable) of 0.375% of the aggregate nominal amount of such shares held by them, in addition to the New Lloyds TSB Preference Shares to be issued to them pursuant to the Preference Scheme.

HBOS has today posted a letter to holders of the Relevant Preference Shares setting out further details of the amendment.

Association of British Insurers

The Amended Preference Scheme has been considered by a special committee (the "Special Committee") of the Association of British Insurers (the "ABI"). The members of the Special Committee together hold approximately 33.9 per cent. of the outstanding Sterling-denominated HBOS Preference Shares. The members of the Special Committee have examined the Amended Preference Scheme and informed Lloyds TSB that they find the Amended Preference Scheme acceptable, that they intend to vote in favour of the resolutions in respect of their holdings and that they invite other members of the ABI to consider a similar course of action.

Capitalised terms used but not otherwise defined herein shall have the same meaning as defined terms used in the HBOS Preference Scheme Circular dated 14 November 2008 in respect of the Preference Scheme (the "Preference Scheme Circular").

For further information, please contact

The Press Office

Tel:                [phone]
Fax:               [phone]

Investor Relations
Michael Oliver

Tel:                 [phone]

E-mail:    [e-mail]

Lloyds TSB Group plc
Head Office
25 Gresham Street
London EC2V 7HN

DISCLAIMER

This announcement must be read in conjunction with the Preference Scheme Circular. This announcement and the Preference Scheme Circular contain important information which must be read carefully before any decision is made with respect to the Preference Share Scheme. If you are in any doubt as to the action you should take, you are recommended to seek your own legal, tax and financial advice, including as to any tax consequences, from your stockbroker, bank manager, solicitor, accountant or other independent financial adviser. Any individual or company whose Relevant Preference Shares are held on its behalf by a broker, dealer, bank, custodian, trust company, or other nominee must contact such entity if it wishes to participate in the Preference Share Scheme.

 

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