25th Nov 2015 14:30
LONDON (Alliance News) - The UK government on Wednesday reiterated that it expects to sell shares in Lloyds Banking Group PLC to members of the public in Spring 2016, while it also plans to sell over GBP25.0 billion of shares in Royal Bank of Scotland Group PLC over this Parliament and a further GBP5.8 billion in 2020-21.
The government retains an 9.89% stake in Lloyds Banking Group, and is nearing completion of the divestment of its stake in the bank. The stake used to be as high as 43% after a GBP20.5 billion bailout in the wake of Lloyds' disastrous acquisition of HBOS in the financial crisis of 2008-09. The lender's recovery and return to paying dividends has enabled the government to close in on full re-privatisation of the bank.
RBS's recovery has been much slower, meaning the government still owns 72.9% of the bank after raising GBP2.1 billion with the sale of a 5.4% stake in August.
The government's strategy for state-owned financial assets, contained within its Spending Review and Autumn Statement, also includes plans for UK Asset Resolution, responsible for managing the state's interests in failed lenders Northern Rock and Bradford & Bingley, to make further
asset sales over the course of the Parliament. Those asset sales are currently expected to total GBP7.5 billion, the government said.
The government also said it wants to press ahead with the privatisation of the Green Investment Bank, a green infrastructure investor, with a sale to be concluded during 2016-17.
Other assets also will be sold under the government's plans.
The Spending Review and Autumn Statement said that Network Rail will be allowed to sell assets and re-invest proceeds in rail infrastructure, while the sale of the state's 49% stake in air traffic control operator NATS will be explored.
The government will consult on option to move operations of the Land Registry to the private sector from 2017, and look to bring private capital into the Ordnance Survey before 2020.
In addition, the government wants to sell Department of Health corporate and financial assets, including Community Health Partnerships subordinated debt and Credit Guarantee Finance lending to private finance initiative projects.
By Samuel Agini; [email protected]; @samuelagini
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
LloydsRBS.L