UK taxpayers no longer largest Lloyds Bank owner
The plan to return Lloyds Banking Group to the private sector passed a significant milestone when it was confirmed that the government is no longer the largest shareholder.
The latest share sales, conducted through the trading plan, have reduced the government’s remaining shareholding to less than 6% and below the level of the next largest shareholder.
These latest share sales mean the government has recovered over £18 billion of the £20.3 billion taxpayers injected into Lloyds during the financial crisis, once share sales and dividends received are accounted for.
A trading plan involves gradually selling shares in the market over time, in an orderly and measured way.
The Lloyds trading plan initially ran from December 17, 2014 to June 30, 2016. The government announced on 7 October 2016 that further sales of Lloyds shares would also be made through a trading plan.
As required by Financial Conduct Authority (FCA) rules, Lloyds Banking Group announced that the government’s shareholding in the bank has crossed through a one percentage point threshold.
This announcement therefore notifies the market that the government has reduced its shareholding in Lloyds to below 6%. ■