The UK government is set to sell more of its shareholding in Lloyds Banking Group and plans to return the group to private ownership and get taxpayers’ money back.
The UK Financial Investments advised the government to sell the remaining part of the government’s shareholding in Lloyds through a trading plan.
Morgan Stanley will execute the trading plan as broker on behalf of HM Treasury.
The Chancellor George Osborne said: "I can confirm today that the government is taking the next step in returning Lloyds Banking Group to private ownership.
"The trading plan I’m initiating today is made possible by our long term economic plan which is delivering a more secure and resilient economy. It is another step in reducing our national debt and in getting taxpayers’ money back".
In an orderly and measured way, a trading plan involves gradually selling shares in the market over time.
The plan, which will be in place for approximately six months, has been initiated and sales are expected to begin in the coming days.
Sales of the government’s shares in Lloyds earlier are said to have raised £7.4bn, reducing the government’s stake in the bank from around 40% to under 25%.
Since September 2013, the government conducted two sales to institutional shareholders and holds about a 25% stake in Lloyds from then and had held as much as a 40% stake in the British lender.
With the sale, the Treasury had raised about $11.6bn.
Lloyds Banking Group was formed through the acquisition of HBOS by Lloyds TSB in 2009. Its activities are organized into retail banking, commercial, life, pensions & insurance, and wealth & international.
Image: Morgan Stanley will act as broker on behalf of HM Treasury to execute the sale. Photo: courtesy of UK Government