15 Oct Further Lloyds share sales announced
The government has announced the sale of a further 1% of shares in the Lloyds Banking Group through the trading plan launched in December. The latest sales mean that the total recovered from the sale of Lloyds shares to over £15.5 billion and has reduced the government’s stake to below 11%.
The trading plan is due to end no later than 31 December 2015. The Treasury is using a trading plan that involves gradually selling shares in the market over time, in an orderly and measured way. At the 2015 Budget the Chancellor announced that the government will sell at least £9 billion of Lloyds shares in 2015/16.
The Chancellor of the Exchequer, George Osborne said:
'It's fantastic news that we’ve sold more shares in Lloyds Bank, taking the total recovered for the taxpayer to £15.5 billion. I am determined to build on this success by making Lloyds shares available to the public next Spring, so that we can build a share-owning democracy and continue to reduce our national debt.'
The Government has also confirmed plans to offer a least £2 billion of Lloyds Banking Group shares to the public by way of a share offer. Subject to market conditions, the Lloyds IPO is expected to take place next Spring. The Government has been clear that this IPO will be heavily geared towards small investors with those applying for less than £1,000 worth of shares given priority.
Members of the public will be offered a discount of 5% of the market price. Investors who hold their shares for more than a year will receive a bonus share for every 10 shares they buy, up to a value of £200. Applications will be accepted online or by post.