Government sells 6% of its Lloyds stake for £3.3bn
City Index September 16, 2013 10:06 PM
<p>The UK Financial Investments (UKFI) and HM Treasury confirmed after the close of trading on Monday plans to sell part of the government’s stake in […]</p>
The UK Financial Investments (UKFI) and HM Treasury confirmed after the close of trading on Monday plans to sell part of the government’s stake in Lloyds Banking Group.
As part of the plan, the government will place 4.2bn ordinary shares, totalling approximately £3.3bn and will see its stake reduced to 32.7%. Bank of America/Merrill Lynch, JP Morgan Cazenove and UBS will managed the sale. As part of the sale, the UKFI agreed it will not sell any more shares for at least three months.
The market has been awash with speculation for a month that the government is in the final stages of offering part of its stake on the market and so today’s confirmation will not cause any real surprises.
However, the sale sets in motion the first step of the re-privatisation of banks rescued during the financial crisis. This is yet another important milestone on the road to recovery for the financial sector and Birtains economic recovery.
The stake sale announcement today also comes five years after the failure of Lehman brothers. As such, there is perhaps no better reference point for reflection as to just how far the UK banking sector has come since those dark days.
StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.