More Lloyds shares to be sold off

Another tranche of British taxpayer shares in Lloyds Banking Group are to be sold off as the Government continues with plans to fully return the lender to the private sector.

Around 5.4 billion Lloyds shares will be sold to institutional investors, raising about £4.2bn for the taxpayer based on today’s closing share price.

This will bring down the British government’s stake to 25% from 33% currently.

It is expected that a multibillion-pound shares offering to members of the public will go ahead later in the year.

A British Treasury spokesman said: “The Government set out its objectives for its shareholdings in the banks in the Chancellor’s annual Mansion House address last June – getting the best value for the taxpayer, maximising support for the economy and restoring private ownership – and as set out in that address, the Government will only conclude a sale if these objectives are met.

“Building a stronger banking system is a core part of the Government’s long-term economic plan to deliver greater economic security.”