Lloyds Banking Group: UK Government Cuts Stake to 9.89%
October 29 2015 - 3:50AM
Dow Jones News
By Ian Walker
LONDON--The British government has reduced its stake in Lloyds
Banking Group PLC (LLOY.LN) by another percentage point to 9.89%,
the latest in a series of small share sales in the bailed-out
bank.
Lloyds said Thursday that the government now owns 7.06 billion
shares, or 9.89% of the bank's voting rights. It previously held
7.83 billion shares, or 10.97%.
Earlier this month, the British government announced plans to
sell at least 2 billion pounds ($3.07 billion) worth of shares in
Lloyds to the public next spring as part of a broader move to
dispose of its stake in the bailed-out lender.
The government, which said it intends to fully exit Lloyds
position in coming months, said proceeds of the share sale to
retail investors would be used to pay down national debt.
The Treasury said the public would be offered a discount of 5%
of the market price when buying shares and that a bonus share would
be awarded for every 10 shares for investors who hold the stock for
more than a year.
Lloyds was bailed out by U.K. taxpayers during the financial
crisis, with the government taking a 39% stake. The government
started selling its shares in Lloyds in late 2013 and now holds a
11.98% stake.
Write to Ian Walker at ian.walker@wsj.com; @IanWalk40289749
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(END) Dow Jones Newswires
October 29, 2015 03:35 ET (07:35 GMT)
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