The email said: “As the Chancellor announced, we are withdrawing plans for a Lloyds retail offer. The government wants to get the best possible return for the taxpayer. Due to conditions in financial markets and current share prices, a retail offer at this point in time would not achieve this aim.”
The next phase in the government’s plan to sell the British taxpayers’ remaining £3.6bn stake in Lloyds Banking Group will begin shortly.
Speaking in Washington, the Chancellor, Philip Hammond announced that the government will begin to sell its 9.1% stake to institutional investors instead. The government has already raised around £16.9bn for the taxpayer from previous Lloyds share sales.
The decision follows advice from UK Financial Investments (UKFI) that selling shares through the trading plan represents good value for money for taxpayers and would recoup the full £23.3bn invested during the bailout.
The Chancellor, Philip Hammond said: “I have listened to the experts. Ongoing market volatility means it is not the right time for a retail offer.”
The trading plan has been initiated today with a sales time frame of around 12 months with Morgan Stanley acting as a broker for the shares.