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

Subscribe to WSJ: http://online.wsj.com?mod=djnwires

Lloyds Banking (NYSE:LYG)
Historical Stock Chart
From Mar 2024 to Apr 2024 Click Here for more Lloyds Banking Charts.
Lloyds Banking (NYSE:LYG)
Historical Stock Chart
From Apr 2023 to Apr 2024 Click Here for more Lloyds Banking Charts.