Lloyds Banking Group PLC (LSE:LLOY) shares continued their recent good run on reports that investors are in line for a £500 million windfall from the sale of the Telegraph Media Group (TMG).
The bank took control of TMG earlier in the year when its then-owners, the Barclay family, defaulted on a loan repayment.
But the latest twist is that the Barclay family intends to pay back the loan with the help of Abu Dhabi funding possibly by tomorrow.
An investigation has been launched by the government into the implications of an Emirates-based sovereign wealth fund taking over the newspaper, but this won’t affect Lloyds getting its money.
According to Sky, Lloyds had written off £500 million of the £700 million TMG loan but will be able to write this back once it is paid back, giving rise to the potential handout.
Lloyds announced an interim dividend of 0.92p in July 2023, up 15%, costing it £594 million.
Shares rose 0.7% today to 44.8p, making a 13% rise since the start of November.