The Government is to sell off more of its stake in Lloyds Banking Group in a move expected to raise around £3bn.
UK Financial Investments, the company set up to manage the Government stakes in banks, has advised the Treasury to sell another part of its shareholding in Lloyds through a trading plan.
Previous share sales by the Government have so far raised £7.4bn, taking its stake in Lloyds from 40 per cent to 25 per cent. The trading plans allow for up to 15 per cent of the shareholding to be sold, but it is expected the next sale will see 5 per cent sold, raising around £3bn for the Treasury.
The share sale will be managed by Morgan Stanley and will take place over about six months, allowing the shares to be offloaded in an “orderly and measured way”.
The shares will not be sold below the 73.6p price paid by the previous government when it bailed out Lloyds in 2008.
Chancellor George Osborne says: “I can confirm today the Government is taking the next step in returning Lloyds Banking Group to private ownership.
“The trading plan I am initiating today is made possible by our long-term economic plan. It is another step in reducing our national debt and in getting taxpayers’ money back.”
A spokeswoman for Lloyds Banking Group says: “We are pleased the Government has announced its intention to sell part of its remaining shareholding in Lloyds Banking Group and allow taxpayers to get more of their money back.
“This reflects the hard work undertaken over the last three years to make Lloyds a safe and profitable bank that is focused on supporting the UK economy.”