By Razak Musah Baba
LONDON--U.K. Financial Investments Ltd. said Tuesday that it
intends to sell part of the U.K. Treasury's shareholding in Lloyds
Banking Group PLC, by way of a placing to institutional
investors.
UK Financial Investments Ltd., or UKFI, said the price at which
the placing shares are sold will be determined by way of an
accelerated book-building process, adding that the book will open
with immediate effect following this announcement.
The placing is expected to comprise 5.35 billion of the
company's ordinary shares, representing 7.5% of the issued ordinary
capital of the company.
As a result of the placing, the overall size of HM Treasury's
shareholding in the company will be reduced to 25% from 32.7%.
UKFI and HM Treasury have undertaken to the bookrunners not to
sell further shares in Lloyds for a period of 90 calendar days
following the completion of the placing without the prior written
consent of a majority of the bookrunners, it said.
Bank of AmericaMerrill Lynch, J.P. Morgan Securities PLC, Morgan
Stanley Securities Limited and UBS Ltd. have been appointed to act
as bookrunners in connection with the placing.
UK Financial Investments is a limited company that was set up in
November 2008 and mandated by the U.K. Government to manage HM
Treasury's shareholdings in banks subscribing to its
recapitalization fund.
Details of the placing price and the number of placing shares
will be announced at a later date.
Lloyds Banking Group PLC closed Tuesday at 79 pence, valuing the
company at GBP56.52 billion ($93.88 billion).
Write to Razak Musah Baba at Razak.Baba@wsj.com
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