Lloyds Banking Group

Lloyds Banking Group was rescued by the British government in the 2008 financial crisis, receiving 20.5 billion pounds, giving the government a 38.7 per cent stake. In September 2013, the government announced a planned sale of some of its shares to reduce its stake to 32.7 per cent. 

BusinessMoneyMarkets & Investing

UK kicks off Lloyds bank share sale

PUBLISHED : Tuesday, 17 September, 2013, 11:15am
UPDATED : Tuesday, 17 September, 2013, 3:12pm

Britain has kickstarted the sale of its shares in Lloyds Banking Group, selling a 6 per cent stake in the part-nationalised lender and raising 3.2 billion pounds ($5.1 billion).

The placing price was 75 pence per share, a 3 per cent discount to Lloyds’ closing price on Monday and ahead of the government’s average buy-in price of 73.6 pence.

Britain’s Conservative-led coalition government regards the sale as a milestone in the country’s recovery from the 2008 financial crisis, during which taxpayers pumped a combined 66 billion pounds into Lloyds and Royal Bank of Scotland.

UK Financial Investments (UKFI) sold the shares to financial institutions through an accelerated bookbuild. Bank of America Merrill Lynch, JP Morgan Cazenove and UBS Investment Bank were joint book runners. Lazard acted as capital advisor.

The government’s stake in Lloyds will be reduced to 32.7 per cent from 38.7 per cent previously. It has agreed not to sell any more shares in the bank for 90 days.

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