12th May 2015 10:17
LONDON (Alliance News) - Lloyds Banking Group PLC is continuing its gradual return to full private ownership, as stock exchange documents on Tuesday confirmed that the UK taxpayer's stake has fallen yet again.
The documents confirmed that the taxpayer's stake in the bank has fallen to 19.93% from 20.95% previously. Following its GBP20 billion state rescue in the financial crisis of 2008-09, the government had owned as much as 43% of the banking group, which fell into trouble with its acquisition of UK rival HBOS.
The latest fall in the taxpayer's stake marks the first such announcement since the results of last week's UK General Election brought a surprise majority for the UK's Conservative Party.
Chancellor of the Exchequer George Osborne wants to continue to sell down the stake held in Lloyds and to involve private investors in a future share sale. The disposals to date have been been to institutional investors.
In a statement, the government said the GBP500 million share sale means it has raised more than GBP10 billion from shrinking its holding in the bank.
The latest sale was made through a trading plan designed to drip shares into the market. That plan was launched on December 17 and will end on June 30 at the latest. The government said it has raised more than GBP2.5 billion through the trading plan to date, with all of the shares being sold above the 73.6 pence average price that was paid for them.
Lloyds shares were up 0.5% at 87.03 pence late Tuesday morning.
By Samuel Agini; [email protected]; @samuelagini
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