UK Government Cuts Stake in Lloyds to About 9%; Now Recovered Nearly GBP17 Billion -- Update

By Ian Walker

LONDON--Lloyds Banking Group PLC (LLOY.LN) Thursday said the U.K. government has lowered its shareholding in the bank to 6.42 billion shares, or about 9% of its issued share capital.

The U.K. Government previously held 7.06 billion shares.

No price was disclosed for the share sale, which was conducted on Wednesday. However, in a statement from the Treasury, Chancellor of the Exchequer Philip Hammond said the Government has now recovered nearly 17 billion pounds ($20.77 billion) of the GBP20.3 billion taxpayers injected into Lloyds during the financial crisis, once share sales and dividends received are accounted for.

"Selling our shares in Lloyds and making sure that we get back all the cash taxpayers injected into it during the financial crisis is one of my top priorities as chancellor," Mr. Hammond said.

All money raised from the sales are used to reduce the national debt.

Lloyds, the U.K.'s biggest retail bank, was bailed out by U.K. taxpayers during the financial crisis, with the government taking a 39% stake. The government started selling its shares in the bank in late 2013.

Earlier this month, Mr. Hammond said the government would begin to sell its 9.1% stake in Lloyds via a trading plan, withdrawing the planned retail sale. He blamed ongoing market volatility for pulling the planned retail offer.

Write to Ian Walker at [e-mail]; @IanWalk40289749

(END) Dow Jones Newswires

October 27, 2016 03:10 ET (07:10 GMT)

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