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The UK government to sell stake in Lloyds Banking Group

Staff writer |
The UK government will try to raise 3.2 billion pounds by selling off 6% of its stake in Lloyds Banking Group. That would reduce the government stake in Lloyds to 32.7% by selling off some of its shares for 75p each.

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The price is above the 73.6p paid during the 2008 bailout, and the selling would be to large investors. There will be no further sale of Lloyds shares by the government for 90 days, said the Treasury and UK Financial Investments (UKFI), the arm which handles state-owned shares in banks.

UKFI's shareholding would be reduced by 15.5% to 23.3 billion ordinary shares. Lloyds has returned to profitability, generating a pre-tax profit of ?3 billion in the opening six months of 2013.

Eyes will shift to RBS, the other state-backed financial institution that had to be rescued from collapse in the crisis. As a result of a 45 billion pounds injection by the Treasury, the government holds 81% of RBS. However, the RBS share price continues to float well below that at which the government bought its stake in 2008.

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