Yahoo Finance Govt To Sell Off £4.2bn In Lloyds Bank Shares
Taxpayers are to be left with a 25% stake in Lloyds Banking Group as the Government announces plans to sell £4.2bn in shares.
The taxpayer currently owns 33% of Lloyds but the Treasury is continuing with plans to fully return the lender to the private sector.
Some 5.4bn shares are expected to be sold to members of the public later this year - raising about £4.2bn based on Tuesday’s closing share price of 79.1p.
The shares were bought for 73.6p - meaning the Government would make almost £30m profit if the price remains at its current level.
A Treasury spokesman said: "The Government set out its objectives for its shareholdings in the banks in the Chancellor's annual Mansion House address last June - getting the best value for the taxpayer, maximising support for the economy and restoring private ownership.
"And, as set out in that address, the Government will only conclude a sale if these objectives are met.
"Building a stronger banking system is a core part of the Government's long-term economic plan to deliver greater economic security."
Though the taxpayer will be left with a 25% stake, it is understood much of the that is likely to be sold through a retail offering later this year.
The Government injected roughly £21bn into Lloyds in October 2008 during the financial crisis.
Another £5.7bn was paid by taxpayers in 2009 to maintain a 43% stake following a rights issue.
In April 2010 Lloyds returned to profit for the first time since its bailout.
The Government made a profit of £61m selling off the first tranche of its shares in September last year.
A process to decide the starting price of the shares being sold to the public will begin with "immediate effect", UK Financial Investments Limited have said.
Antonio Horta-Osorio, chief executive of Lloyds, said: "I am pleased that the Government intends to sell a further stake in Lloyds Banking Group and allow taxpayers to get more of their money back.
"I believe this reflects the hard work undertaken over the last three years to make Lloyds a safe and profitable bank that is focused on helping Britain prosper."
Lloyds posted statutory profits of £415 million for 2013 against losses of £606 million in 2012 - its first bottom-line profit since 2010.
More follows...
More From Sky News
