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Government sells Lloyds Banking stake

Government sells Lloyds Banking stake

Category: Banking

Updated: 17/09/2013
First Published: 17/09/2013

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

The Government has sold 6% of the shares it holds in Lloyds Banking Group, cutting its stake in the group from 38.7% to 32.7%.

The shares were sold at 75p, 14p above the Government's break even point of 61p, and bringing in £3.2 billion for the Treasury.

This equates to a £61 million cash profit.

The sell-off begins the lengthy process of recouping taxpayers' funds five years after the billion-pound Government bail-out of the bank.

It follows the bank's announcement in August that it had returned to profit, making £2.1 billion in the six months to the end of June, compared with a loss of £456 million in the same period last year.

In the first stage of the sell-off, shares have been sold to institutional investors and pension funds. It is believed that more will go on sale to the public sometime in 2014.

At close of business yesterday, after the Government had announced the sale, Lloyds Banking Group shares were valued at 77.36p.

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