LLOYDS Banking Group yesterday confirmed a deal to offload investments including cinema chain Vue and shirt maker TM Lewin, which were bought by HBOS in a buying spree prior to its collapse.

The part-nationalised bank said it is selling about 70 per cent of the portfolio to a joint venture with private equity firm Coller Capital for [pounds]332m, valuing the assets at [pounds]480m - a "small premium" to the current market price, according to Lloyds.

Lloyds, which saw shares rise slightly yesterday on the back of the disposal, has now raised more than [pounds]750m from asset sales to shore up its finances following the rescue cheap bandage Dress of HBOS and subsequent taxpayer bail out.

However, it still holds the ill-fated property and housebuilding portfolio, which has also landed the group with hefty write downs since the credit crunch.

The HBOS portfolio, which is said to have been up for sale since 2008, is widely blamed for many of the financial problems at HBOS, which bought the assets at the height of the market. The portfolio includes minority stakes in 40 investments covering an array of British businesses, such as Sir Terence Conran's restaurant empire D&D, gym chain David Lloyd and newsagent and convenience group Martin McColl.

Coach Outlet Lloyds, which will hold a 30 per cent stake in the joint venture, confirmed Coller will retain the former HBOS team responsible for snapping up the assets, led by Graeme Shankland.

A spokesman for the bank said the decision to keep them on was made by Coller for "continuity to get the best out of these assets".

But it is understood Lloyds has negotiated strict terms and conditions in contracts with the former Bank of Scotland integrated finance employees over any future bonus payments.

Yesterday's deal was said to enable Lloyds to realise value immediately in the assets being sold, while also taking part in any future profits from the venture through its retained stake.

Coller - chosen as partner after a competitive bidding process - indicated there would not be any fire sale of the stakes.

Jeremy Coller, chief investment officer of Coller, said the group would work with Lloyds to ensure the investments "get access to the resources they need to reach their full potential".

Analyst Bruce Packard at Seymour Pierce was critical of the deal. He said: "We would not see a disposal at a small premium to 'book value' as a positive.

"Presumably the investments were written down aggressively in the first half of last year, when Lloyds took a [pounds]13.4bn impairment charge for HBOS assets which were outside the traditional Lloyds low-risk appetite."

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