Treasury sells more Lloyds shares

Public owns about a fifth of bank
Public owns about a fifth of bank

The Treasury has sold another chunk of its stake in Lloyds Banking Group, taking its holding in the bailed-out lender to below 21 per cent.

The latest disposal of around one per cent of the group represents stock worth more than £500 million at its latest market value.

The Government announced in December it planned an ‘’orderly and measured’’ sell-off of up to five per cent over six months, raising about £3 billion.

This is being done in small parcels, rather than through larger tranches as had been done previously.

No shares are to be sold below the price the Government paid for them, which was 73.6p. Lloyds closed at 79p on Thursday night.

The Treasury has now recovered about £9.5bn of its £20bn bail-out funds but there are still just under 15 billion shares - equivalent to a stake of 20.95 per cent and worth £11.8bn - left to sell.

Chancellor George Osborne said recently he wants a further £9bn of Lloyds shares to be sold over the next 12 months, including about £4bn to be disposed of through a discounted offer to retail investors.

Lloyds Banking Group is due to issue a trading update next Friday, when profits should benefit from the recovering economy.