Government reduces Lloyds stake

Picture: PA
Picture: PA
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​Lloyds Banking Group said that the ​G​overnment ha​s​ reduced its stake in the bank to 15.9 per​ ​cent from 16.87 per​ ​cent previously, in a further step towards its full privatisation.

Lloyds was rescued during the 2007-9 financial crisis at a cost of ​£​20.5​bn to taxpayers, leaving the ​G​overnment with a 43 per​ ​cent stake in the bank.

​The Treasury began selling off its stake in September 2013 and Lloyds is on track to return to full private ownership in 2016.

It has so far raised around ​£​12​bn from the sale of Lloyds shares.

The ​G​overnment has mandated Morgan Stanley to sell shares on the London Stock Exchange through a trading plan known as a “dribble out”. It stake has been cut from 24.9 per​ ​cent through the plan, which was launched last December and is due to carry on until the end of 2015.

The ​G​overnment is expected to offer retail investors the chance to participate in an offer of several billion pounds worth of Lloyds shares next year.