Financial Services

UK to sell £2bn Lloyds shares to households

Members of the public will be offered a discount of 5% as Government looks to exit stake in bank

The British Chancellor of the Exchquer, Geroge Osbourne, has announced that £2 billion worth of Lloyds Bank shares will go on sale to the British public. (Photograph: WILL OLIVER/EPA)

Mon Oct 5 2015 - 08:00

The British government said it plans to sell at least £2 billion of Lloyds Banking Group shares to households early next year. The government plans to “fully exit” its Lloyds stake “in the coming months,” according to a statement on Monday. Members of the public will be offered a discount of 5 per cent of the market price, with a bonus share for every 10 shares if they hold their investment for more than a year.

Chancellor of the Exchequer George Osborne is seeking to return Lloyds to full private ownership after the government spent £20.5 billion pounds rescuing the lender during the financial crisis of 2008. The government will use the funds to help cut national debt.

Under the current year-long trading plan due to end in December, U.K. Financial Investments Ltd. has been selling small batches of shares to investors, reducing its holding from 25 per cent. A sale in September pushed the government stake to below 12 per cent.

Bloomberg

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