Sid-style share sale for Lloyds
Tories plan ‘Tell Sid’ sale of Lloyds Bank shares to public
Bank of Scotland has edged closer to a return to full private sector ownership after Chancellor George Osborne outlined plans to sell shares in parent group Lloyds Bank to the public if the Tories are re-elected to government.
The sale would echo the privatisation issues of the 1980s, popularised by the ‘Tell Sid’ adverts used to sell shares in British Gas.
Mr Osborne said private investors would be given the opportunity to buy between £250 and £10,000 of Lloyds shares, with priority going to orders of up to £1,000 in order to encourage ordinary savers to take a stake.
Shares will be sold at a 5% discount to their market value, and investors who hold their shares for a year would receive an extra 10%, up to a value of £200.
As with previous sales of Lloyds stock, shares will only be sold at a price of at least 73.6p, the price paid during the bailout. Lloyds shares closed at 78.75p on Friday.
The Sunday Telegraph said the government aimed to raise £2 billion to £3bn buy selling shares to around 200,000 investors.
The last Labour government injected £20 billion to rescue Lloyds after its catastrophic acquisition of HBOS.
The coalition government has already raised £9bn from the sale of Lloyds shares to institutions, reducing the Treasury’s stake from 43% at the time of the bailout to 22%.