Lloyds Banking Group PLC (LYG), which is 43.5%-owned by the U.K. government, said Friday it has agreed to sell its loss-making Halifax Estate Agencies business to LSL Property Services PLC (LSL.LN) for GBP1.

The bank said the move won't have a material impact on its accounts. Halifax Agencies include a network of 218 offices and 93 franchise operations.

The Lloyds' Halifax brand isn't included in the sale, and the Halifax Estate Agency will eventually be renamed as one of LSL's existing networks, either as 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," Lloyds said.

Lloyds is currently looking at ways of reducing its dependence on the U.K. government and is reported to be drawing up plans that will allow it to avoid having to insure GBP260 billion worth of risky loans and investments through the state-backed asset protection plan.

The LSL deal should be completed in January, when around 1,000 estate agency staff will transferred. Overall, Lloyds expects 360 job losses.

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."

As part of its ongoing restructuring, Lloyds said Thursday it may sell some of its investment management assets, including Bank of Scotland Portfolio Management Services, to Rathbone Brothers PLC (RAT.LN).

At 0711 GMT, Lloyds Bank shares were up 4 pence, or 4.2%, at 95 pence. LSL was up 13 pence, or 5%, at 275 pence.

Company Web site: http://www.lloydsbankinggroup.com

-By Digby Larner, Dow Jones Newswires; +33 1 4017 1748; digby.larner@dowjones.com
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