Following the sale, Lloyds will be left with a 50% shareholding in TSB.
The stake is being divested at 280 pence a share, and the proceeds will be utilized for general corporate purposes, reproted Reuters.
The sale of stake in TSB is one the terms set forth by the European regulators for a government bail out during the financial crisis.
In June, the group sold a 38.5% stake in TSB through an initial public offering for approximately £1.3bn.
According to the regulators, the selloff can help boost consumer choice in the British banking industry.
Lloyds said that it will not sell any other shares from TSB in the next 90 days. The group has a deadline to sell the entire stake by the end of 2015.
Image: Lloyds Banking Group will sell the entire stake in TSB by 2015. Photo: courtesy of Mtaylor848.
