Britain sells 7.8% of Lloyds Banking for $6.9 billion
Latest sale of Lloyds’ stake takes Britain’s overall holding from 32.7% to 24.9%
- Nissan opens global digital hub in Kerala, first MNC setting shop in the state after seven years
- Airtel hopes early amicable resolution of Niger tax dispute
- ‘All Indians should be concerned’, says Rajan on Urjit Patel’s resignation
- Reliance Jio seen as India’s No.1 telecom company by 2021
- China backs India’s bid for improved domestic regulations
London: Britain has sold an extra 7.8% stake in bailed-out Lloyds Banking Group for £4.2 billion ($6.9 billion), it said on Wednesday.
The latest sale, pitched at 75.5 pence per share to institutional investors, takes the state’s overall holding from 32.7% to 24.9%, the treasury said in a statement.
Prime Minister David Cameron’s Conservative-Liberal Democrat coalition government had already sold a 6.0% tranche in September for £3.2 billion, at 75 pence per share, as it seeks to return LBG to the private sector.
“I can confirm this morning that we have sold a further £4.2 billion of shares in Lloyds Banking Group at 75.5 pence a share, taking the taxpayer’s stake down to below a quarter of the bank,” said Conservative finance minister George Osborne in the statement.
“This represents good value for the taxpayer and the money will again be used to reduce the national debt.” “This is another step in the government’s long term economic plan to deliver a more secure and resilient economy. It is another step in repairing the banks, in reducing our national debt and in getting the taxpayer’s money back.”
UK Financial Investments (UKFI), which manages the state’s bank holdings, had already announced late on Tuesday that it would seek to sell about 7.5%.
Banking giant Lloyds was bailed out at the top of the 2008 financial crisis with £20 billion of government money.
Lloyds Banking Group was created by a merger of Lloyds TSB and rival British lender HBOS amid the global financial crisis. However, HBOS was saddled with toxic or high-risk property investments, and LBG subsequently received a vast state bailout under the then-Labour government.
Editor's Picks »
- The government has a troubling message for minority shareholders
- Opec-allies’ output cut may not amount to big shift in oil prices
- RBI’s new loan rate math for banks cannot ignore deposits
- Maruti loses speed as PV growth slows amid rising challenges
- Risks emerge for Ramakrishna Forgings, Bharat Forge, Motherson Sumi as heavy-duty trucks face headwinds