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.
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