Sources told Reuters that Lloyd's Banking Group is busy preparing its exit from the Australian market. Three people knowledgeable of the matter said the Britain-based bank intends to sell its USD 3.6 billion leasing unit as well as a USD 625 million loan portfolio. The exit is part of Lloyd's strategy to lower costs and improve its balance sheet. Its plans include the reduction of its international branches to only 10 countries from its present 14 by next year.
The sources also added that USD 625 million loan portfolio already has five shortlisted bidders. The portfolio is from the international unit of Lloyd's Bank of Scotland. The second-round bidders include National Australia Bank Ltd., Macquarie Group Ltd., KKR & Co LP, Westpac Banking Corp, and Oaktree Capital Group. They are expected to give their bids sometime in the middle of August.
Capital Finance is the leasing unit up for sale. Around two-thirds of its lease business revolves on motor vehicle financing. Equipment financing makes up the remaining one-third.
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