London - Britain's bailed-out Lloyds Banking Group said Thursday that it will sell another tranche of shares in its TSB division.
LBG said in a statement that it will offload 11.5% of TSB or 57.5 million shares, worth about 160 million ($260m, €205m), in a placing to institutional investors.
"Following the sale the group expects to retain approximately 50% of the issued share capital of TSB," LBG said.
As part of its turnaround strategy and in order to meet European Union state aid rules, Lloyds relaunched TSB as a standalone lender last year, rebranding more than 600 of its branches.
The group subsequently sold off 38.5% of TSB in a partial stock market flotation in June.
LBG itself remains 25%-owned by the British government, despite recent reductions to the stake as the bank recovers from a massive state bailout during the 2008 financial crisis.
Lloyds has previously stated that it intends to complete a full sale of its TSB stake by the end of 2015.