16th Sep 2013 16:02
LONDON (Alliance News) - The UK Government Monday said it would start disposing of the stake it took in Lloyds Banking Group PLC during the financial crisis by selling about 6% of the bank, reducing its stake to 32.7%.
At the bank's current share price that would raise nearly GBP3.3 billion for the government.
UK Financial Investments Ltd, the company managing the government stakes in Lloyds Banking Group PLC and Royal Bank of Scotland Group PLC, Monday said it would sell 4,282,034,109 shares to institutional investors at a price to be determined by an accelerated bookbuilding process, which involves offering shares in a short time period with little to no marketing.
The government's current stake in Lloyds is approximately 38.7% of the share capital.
UK Financial Investments said it wouldn't then sell any more shares for 90 calendar days following the completion of the placing without the permission of the banks conducting the sale.
BofA Merrill Lynch, JP Morgan Cazenove and UBS Investment Bank have been appointed to act as joint bookrunners for the sale. Lazard & Co is an adviser.
Lloyds shares Monday closed at 76.9789 pence, up 0.5%, or 0.3689 pence.
By Samuel Agini; [email protected]; @samuelagini
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