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The British Government on Monday said it would sell 6 per cent of its 39 per cent stake in Lloyds Bank, which in 2008 was bailed out by the state to the tune of 20.3 billion pounds ($ 32.3 billion).
Speculation that the Government would begin selling its stake was fuelled when Lloyds returned profits of 2.1 billion pounds in the first half of 2013, compared with a loss of 456 million pounds in the same period of the previous year.
Chancellor George Osborne, who earlier this year said the bank was ready to be privatised, authorised the sale.
“We want to get the best value for the taxpayer, maximize support for the economy and restore them (the banks) to private ownership,” a Treasury spokesperson said.
“The Government will only conclude a sale if these objectives are met.” UK Financial Investments (UKFI), which manages the stake for the Government, said it would be selling 4.28 billion shares, worth around 3.3 billion pounds based on Monday’s closing prices.
The bank’s shares closed at 77.36p, well above the 63.1p which the Treasury has said it needs to break even.
UKFI said no more shares would be sold for 90 days after the first share placing is completed.
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