By Richard Johnstone | 26 March 2014
The Treasury has today raised £4.2bn from selling part of the taxpayer’s stake in Lloyds Banking Group, taking the government holding in the firm that was bailed out during the 2008 financial crisis to less than 25%.
It was announced yesterday that UK Financial Investments, the government body that manages the investment in the bailed-out banks, told Chancellor George Osborne that a second tranche of Lloyds stock should be privatised.
Following a short sale process, it was confirmed today that around 7.8% of the firm’s issued shares were sold at 75.5p each, raising £4.2bn.
This latest sale comes after last September’s first sell-off. Following the dispersals, the Treasury’s stake has been reduced from around 38.7% after the bailout to 24.9% now.
A Treasury spokesman said that the sale went ahead as it met Osborne’s conditions.
‘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.’
Under the terms of the deal, the Treasury has committed to not sell any more of its stake in Lloyds for 90 days.
