The Government set to cash in on Lloyds
The UK government has launched the next phase to reduce its stake in Lloyds Banking Group, which provides sales in the next six months up to 5% stake in the company for more than three billion pounds.
“I can confirm that the government is taking the next step to return Lloyds Banking Group to private hands,” said Chancellor of the British Treasury George Osborne, a day after the release of the results of pressure tests on banks in the country.
Although the government says the number of shares to be included in this sale plan will depend on market conditions, among other factors, the BBC aims to be up 5%, reducing its stake from 25% 20%.
The British government currently owns the vehicle through UK Financial Investments totalling 17.8 billion ordinary shares of Lloyds, which represents a 24.9% stake in the rescued entity.
The Executive reiterates its commitment to return Lloyds to private hands in a way that creates the most value for shareholders, so the titles will never sell at a lower price than they were purchased, which stood at 73.6 pence.
In this sense, it recalls the success of previous sales, which allowed the capture of -to date – 7.4 billion pounds and reduced participation from 40% to 25%.
Similarly, the sale of shares, which will begin in the coming days, will take place gradually, orderly and measured in the markets over the next six months.
Osborne stressed that the sale plan gets underway on Wednesday and makes possible its long-term economic program that seeks to create a “more secure and resilient” economy. “It’s another step in reducing our national debt and return the money to taxpayers,” he said.
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