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Treasury to sell £4.2 billion stake in Lloyds

The Treasury will sell another part of its stake in Lloyds Bank for £4.2 billion, reducing the government ownership of the bank by 23.8%.

UK Financial Investments Limited, the firm charged with operating government takes in failed banks, will make the sale on March 31.

The move will mean just over 7.5% of government shares are sold to Lloyds investors.

Bank of America Merrill Lynch, J.P. Morgan Cazenove (who have also been acting as UKFI’s privatisation strategy adviser), Morgan Stanley Securities Limited and UBS Limited were appointed to act as Bookrunners in connection with the Placing.

The move follows the government’s sale of 6% of Lloyds last year, which raised £3.2 billion.

A Treasury spokesperson said: “UK Financial Investments (UKFI) today advised the Chancellor it would be appropriate to sell another part of the government’s shareholding in Lloyds Banking Group. The government agrees with that advice and has authorised the process to begin.

“The government set out its objectives for its shareholdings in the banks in the Chancellor’s annual Mansion House address last June – getting the best value for the taxpayer, maximising support for the economy and restoring private ownership – and as set out in that address, the government will only conclude a sale if these objectives are met.

“Building a stronger banking system is a core part of the government’s long term economic plan to deliver greater economic security.”

This was posted in Bdaily's Members' News section by Tom Keighley .