1st Jun 2015 06:33
LONDON (Alliance News) - UK Financial Investments Ltd Monday said it has extended the trading plan under which it is selling the UK government's stake in Lloyds Banking Group PLC back to the market.
The body, which manages the government's stakes in financial institutions that were bailed out during the financial crisis, said the plan will continue to be managed by investment bank Morgan Stanley and will now run until no later than the end of December 2015. The original plan, announced last December, was due to end on June 30.
The plan includes a provision that up to 15% of the aggregate total trading volume in the bank be sold over the duration of the plan. The actual number sold will depend on market conditions and is at the full discretion of Morgan Stanley.
"As with all disposals, delivering value for money for the taxpayer is a key consideration and shares will not be sold below the average price per share paid for them," UKFI said.
So far, 4.2 billion Lloyds shares have been sold under the plan, leaving the UK government with about 13.6 billion shares, or a stake of just under 19%.
The extension of the plan to drip Lloyds shares back into the market comes as the government says future share sales could include retail investors.
By Steve McGrath; [email protected]; @stevemcgrath1
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