Overcast

Overcast

max temp: 11°C

min temp: 6°C

ESTD 1874 Search

Banking: Government cuts its stake in Lloyds Banking Group to less than 25%

12:56 26 March 2014

Chancellor George Osborne.

Chancellor George Osborne.

The taxpayers’ stake in Lloyds Banking Group has been cut to less than 25% after the Government raised £4.2billion from the sale of more of its shares.

shares

Chancellor George Osborne said the stake sale represented good value for the taxpayer and was “another step in repairing the banks”.

The latest tranche of shares to be sold off involved the placing of stock with institutional investors, although it is expected that a multibillion-pound shares offering to members of the public will take place later in the year.

The Treasury sold 24% of its remaining shares in the bank at a price of 75.5p a share, taking its remaining holding in the bank to 24.9%. The Government has now sold 36% of its original stake in Lloyds after raising £3.2bn from institutional investors last September.

The Treasury was left with a stake in Lloyds following its £20bn rescue during the financial crisis, after it swallowed up troubled Halifax Bank of Scotland.

But turnaround efforts have seen shares hold steady above the 73.6p break-even level. the average price paid by the Government when the bank was rescued.

Chief executive Antonio Horta-Osorio dubbed Lloyds “a normal ban” last month after posting statutory profits of £415million against losses of £606m in 2012 its first bottom-line profit since 2010.

Mr Osborne said proceeds from the latest sale would be used to reduce the national debt.

He added: “This is another step in the Government’s long-term economic plan to deliver a more secure and resilient economy.

“It is another step in repairing the banks, in reducing our national debt and in getting the taxpayer’s money back.”

shares

0 comments

Suffolk cider and vinegar maker Aspall was named Business of the Year at last year's EADT Business Awards.  From left, Tom McGarry of EDF Energy, Barry Chevallier Guild of Aspall and Sarah Howard,  of SuffolkChamber.  	
Picture: Lucy Taylor

Tomorrow is the final day for entering the 2015 East Anglian Daily Times Business Awards.

David Halliday, managing director of Seafast Logistics.

A small but growing specialist logistics firm based in Suffolk is among a select group of companies celebrating today after scooping a prestigious national accolade.

The Bernard Matthews processing plant at Great Witchingham.

Poultry company Bernard Matthews has revealed signs of recovery by posting a significantly reduced annual loss.

Sarah Sharlott, chief executive of the Ipswich-based Realise Futures.

Sarah Sharlott, chief executive of Ipswich-based Realise Futures, has been giving budding social entrepreneurs “down under” the benefit of her experience of heading an award-winning social enterprise.

The price war between the UK's supermarkets is causing problems for their suppliers and for smaller food retailers, according to a new report.
Photo: Getty Images/Pixland

The supermarket price war is having a “devastating” effect on suppliers and smaller grocers after a report showed the number of food and drink manufacturers in “significant” financial distress jumped by 94% on a year ago.

Frank Brumby, eastern region chairman of R3.

A new website designed to guide the region’s creditors through the insolvency process has been launched by the eastern branch of insolvency trade body R3.

Alex Till of Menta.

Enterprise agency Menta has launched a new Digital Enterprise Engagement Programme (DEEP), offering newly formed local businesses and those who are self-employed access to free digital training courses.

Solar farm. Library image.

A proposed solar park in Wix has been tipped for approval by council planning officers.

The headquarters of Realise Futures in Ipswich.

Ipswich-based social enterprise Realise Futures has won a contract to provide supported employment services for adults with disabilities across a wide area of Essex.

Stage 5 of the Womens Tour passes through Onehouse on their way to Bury St Edmunds last year

Schoolchildren will also be involved in an evening of activities in Bury St Edmunds ahead of the start of a major women’s cycling event.

Most read

Most commented

Topic pages