World Economy

Britain Cuts Lloyds Stake to Below 17%

Britain Cuts Lloyds Stake to Below 17%Britain Cuts Lloyds Stake to Below 17%

Britain has cut its stake in Lloyds Banking Group to below 17%, the finance ministry said in a stock market disclosure on Tuesday, taking the total sum recovered by the taxpayer to £11.5 billion ($18.2 billion).

The taxpayer’s stake has fallen by 1% to 16.87% as UK Financial Investments, which manages the government’s stakes in bailed-out banks, seeks to cash in on increasing investor appetite in Britain’s biggest retail bank, Channel NewsAsia reported.

“Today’s announcement shows the further progress made in returning Lloyds Banking Group to full private ownership and enabling the taxpayer to get their money back,” a Lloyds spokesman said in a statement.

“This reflects the hard work undertaken over the last four years to transform the group into a simple, low-risk and customer-focused bank that is committed to helping Britain prosper.”

Lloyds was rescued at a cost of £20.5 billion to taxpayers during the 2007-9 financial crisis.

UKFI has extended a ‘trading plan’ that allows Morgan Stanley to sell Lloyds shares beyond its current June 30 deadline until the end of the year.

The government is expected to offer retail investors the chance to participate in an offer of several billion pounds worth of Lloyds shares.

The retail sale, in addition to the shares sold through the trading plan, could enable a full exit in the next year.

Shares have been sold through the plan at an average of more than 80 pence, well above the government’s average 73.6 pence buy-in price.