By Ian Walker
LONDON--The British government has reduced its stake in Lloyds
Banking Group PLC (LYG) by another percentage point to 15.9%, the
latest in a series of small sales of shares in the bailed-out
bank.
Lloyds said Thursday the government now owns 11.35 billion
shares, or 15.9% of the bank's voting rights. It previously held
12.04 billion shares.
No price was disclosed for the share sale, which was conducted
on Monday.
Lloyds was bailed out by U.K. taxpayers during the financial
crisis, with the government taking a 39% stake in the U.K.'s
biggest retail bank. The government started selling its shares in
Lloyds in late 2013.
After initially selling portions of Lloyds directly to investors
through accelerated placements, the government in December mandated
Morgan Stanley to sell stock up to the end of June. On June 1 the
program was extended to Dec. 31. The government also said it would
launch a share sale open to retail investors in the next 12 months
and that details will be announced in due course.
Chancellor of the Exchequer George Osborne said in March that
the government would sharply reduce its stake in Lloyds in the next
year to raise at least 9 billion pounds ($14.19 billion). He said
Lloyds' return to profit and the resumption of dividend payouts
this year means "we can continue our exit from that bailout."
Mr. Osborne didn't give details on how the share sale would be
carried out.
Write to Ian Walker at ian.walker@wsj.com