The invite was issued as part of the shareholder Circular, which sets out the terms of the proposed HBOS acquisition and the capital raising plans. The Circular also provides Lloyds TSB shareholders with further details, including a timeline for the proposed acquisition and the announcement of the new name for the enlarged group, Lloyds Banking Group plc.
To help address shareholders questions about the proposed acquisition and the voting process, Lloyds TSB has added a new Your Shareholder Questions Answered section to its recently launched microsite at www.lloydstsb.com/hbosacquisition
Michael Oliver, director of investor relations at Lloyds TSB commented: "In today's rapidly changing financial climate, we understand that our shareholders may have a number of questions about the proposed HBOS acquisition and the wider economic environment. We will be updating the new section of our site, as the transaction progresses to make sure our shareholders have access to the latest news and information."
The Circular also confirmed the Lloyds TSB Board's intention to repurchase of the £4bn of preference shares in the enlarged Group during 2009. Under the terms of the preference shares, the enlarged Group isn't able to pay a dividend on its ordinary shares while any of the preference shares remain outstanding. However, recognising the importance of dividends to shareholders, the bank has committed to the early repayment of the £4bn of preference shares and resuming the option of cash dividend payments.
Michael Oliver continues: "Both Boards are unanimously recommending the proposed HBOS acquisition to their shareholders. The Lloyds TSB Board believes the proposed HBOS acquisition and the resolutions are in the best interests of Lloyds TSB and the Lloyds TSB shareholders as a whole. In today's challenging market environment, the bank believes the enlarged Group will be more competitive and will have greater opportunity to create sustainable shareholder value than Lloyds TSB would on a standalone basis."
The General Meeting to approve the proposed HBOS acquisition and capital raising will take place at the Scottish Exhibition and Conference Centre, Glasgow at 11.00am on 19th November 2008.
