The government’s stake has steadily come down from 43% at the time of the bailout in 2008. The £500m raised in the latest disposal means the Treasury has recouped more than half its stake in the bank.
A TR-1 “notification of major interest in shares” notice from the Stock Exchange shows the threshold crossed or reached is “below 20%” and confirms that the Treasury has disposed of the shares.
The notice also shows that UK Financial Investments Limited, a company wholly-owned by Her Majesty’s Treasury, now owns 19.93% of Lloyds shares.
The Government has raised about £2.5bn by reducing its stake in Lloyds over the past three months.
A spokesman for Lloyds Banking Group said: “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.
“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.”
Chancellor George Osborne (pictured) announced a trading plan in December 2014 which involves gradually selling Lloyds shares in the market in a ‘measured’ way. Osborne suggested at the time the plan would end no later than 30 June 2015.
Last month David Cameron announced plans to offer up to £4bn worth of Lloyds shares to retail investors if the Conservatives win the general election. He told the BBC small investors would be offered shares at below-market prices as part of the sale of the shares in the bailed-out bank.
