LSL Lsl Property Services Plc

 

TIDMLLOY TIDMLSL 
 
RNS Number : 8960A 
Lloyds Banking Group PLC 
16 October 2009 
 

 
 
 
90/09 
16 October 2009 
 
 
LLOYDS BANKING GROUP TO SELL HALIFAX ESTATE AGENCY 
Lloyds Banking Group plc announces that it has reached an agreement in principle 
to sell the Halifax Estate Agencies Ltd (HEA) business which operates through a 
network of 218 offices, including 93 franchise operations, to LSL Property 
Services plc (LSL).  LSL is the parent company of estate agency brands Your 
Move, Reeds Rains and Intercounty. 
 
 
The proposed transaction is expected to complete in January 2010 and will 
involve the assumption of Halifax Estate Agency's assets and liabilities for a 
cash consideration of GBP1.  The effect on the Lloyds Banking Group accounts is 
not expected to be material.  The Halifax brand is not included in the sale and, 
in time, the Halifax Estate Agency offices will be rebranded to either Your 
Move, Reeds Rains or Intercounty. 
 
 
The decision to sell the estate agency business, which has been loss making for 
some time, follows a strategic review undertaken by the Group which concluded 
that an estate agency operation is no longer integral to its business model. 
 
 
As part of the transaction, there are 121 Halifax banking counters located 
within the estate agent offices which will close early in the New Year.  The 
vast majority of these locations have either a Halifax or Lloyds TSB branch 
within one mile. 
 
 
Colleagues 
It is anticipated that approximately 1,050 estate agency colleagues will 
transfer, on completion of the sale, under the Transfer of Undertakings 
(Protection of Employment) 'TUPE' employment legislation to companies within the 
LSL group. Lloyds Banking Group is consulting with its unions about the sale and 
the transfer of employees. 
 
 
In addition, it is anticipated that as a result of the counter closures, up to 
460 colleagues will be affected with the loss of approximately 360 full time 
roles.  The Group's preference is to use natural turnover, make less use of 
contractors and to redeploy people wherever possible to retain their expertise 
and knowledge.  Where it is necessary for colleagues to leave the company, it 
will look to achieve this by voluntary redundancy.  Compulsory redundancies will 
be a last resort. 
 
 
The Halifax retail branch network is unaffected by this announcement and 
continues to operate as usual.  The Group is firmly committed to a multi-brand 
strategy for its banking business and Halifax is one of Lloyds Banking Group's 
key relationship brands. 
 
Customers 
For customers buying and selling property through Halifax Estate Agency there 
will be no change.  On the completion of the transaction, there will be a smooth 
transition to LSL Property Services plc who will continue to market the property 
and assist in the transaction.  All customers potentially affected by the 
counter closures will receive a letter informing them of the changes and letting 
them know about alternative banking facilities in their area. 
 
 
David Nicholson, Managing Director of Halifax Community Bank, said: 
"Halifax Estate Agency is a well established business and, following a strategic 
review, we believe that it is better able to grow outside the Group with a 
strong existing player in the market such as LSL Property Services plc. 
 
 
"The Halifax brand is one of the strongest on the high street and remains 
integral to the Group. Halifax bank branches will continue to operate on the 
high street in England and Wales alongside Lloyds TSB and we are focused on 
growing and developing the Halifax business." 
 
 
Simon Embley, Chief Executive Officer of LSL Property Services plc added: 
"The purchase of Halifax Estate Agency heralds a significant step forward in the 
growth of LSL and its associated estate agency businesses.  We now look forward 
to embracing the opportunities that this move presents to us and, at the same 
time, ensure the high standards and reputation HEA are renowned for are 
maintained and built upon in the future." 
 
 
 
 
- END - 
 
 
 
 
For further information: 
 
 
Investor Relations 
Michael Oliver    +44 (0) 20 7356 2167 
Director of Investor Relations 
Email: michael.oliver@ltsb-finance.co.uk 
 
 
Douglas Radcliffe    +44 (0) 20 7356 1571 
Senior Manager, Investor Relations 
Email: douglas.radcliffe@ltsb-finance.co.uk 
 
 
Media Relations 
Shane O'Riordain    +44 (0) 20 7356 1849 
Group Communications Director 
Email: shane.o'riordain@lloydsbanking.com 
 
 
Amy Mankelow     +44 (0) 20 7356 1497 
Senior Manager, Media Relations 
Email: amy.mankelow@lloydstsb.co.uk 
 
 
 
 
 
FORWARD LOOKING STATEMENTS 
This announcement contains forward looking statements with respect to the 
business, strategy and plans of the Lloyds Banking Group, its current goals and 
expectations relating to its future financial condition and performance.  By 
their nature, forward looking statements involve risk and uncertainty because 
they relate to events and depend on circumstances that will occur in the future. 
 The Group's actual future results may differ materially from the results 
expressed or implied in these forward looking statements as a result of a 
variety of factors, including UK domestic and global economic and business 
conditions, the ability to derive cost savings and other benefits as well as to 
mitigate exposures from the acquisition and integration of HBOS, risks 
concerning borrower quality, market related trends and developments, changing 
demographic trends, changes in customer preferences, changes to regulation, the 
policies and actions of governmental and regulatory authorities in the UK 
or jurisdictions outside the UK, including other European countries and the US, 
exposure to regulatory scrutiny, legal proceedings or complaints, competition 
and other factors.  Please refer to the latest Annual Report on Form 20-F filed 
with the US Securities and Exchange Commission for a discussion of such factors. 
 The forward looking statements contained in this announcement are made as at 
the date of this announcement, and the Group undertakes no obligation to update 
any of its forward looking statements. 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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