Retail offer next spring
Government to sell £2bn of Lloyds Bank shares to public
The Treasury has announced that it will offer £2 billion worth of shares in Lloyds Bank to the public in a retail sale next spring.
The sale will be dependent on market conditions but it is aimed at ensuring Lloyds, which includes Bank of Scotland, will be fully in private hands by next year.
The government has so far been selling shares to institutions, leaving the taxpayer with a stake of just under 12%.
It is likely that the taxpayer will get back all of the £20 billion injected into the bank in 2009 following its disastrous merger with HBOS.
Applications for shares will be available online and by post.
The public will be offered a discount of 5% of the market price, with a bonus share for every 10 shares for those who hold their investment for more than a year.
The value of the bonus share incentive will be capped at £200 per investor. People applying for investments of less than £1,000 will be prioritised.
All proceeds from share sales are used to pay down the national debt.
Military personnel and their spouses stationed overseas will be able to participate in the sale, where possible. This is in line with the government’s armed forces covenant, which ensures that members of the armed forces should not face disadvantage in the provision of public services.
HM Treasury has also launched a dedicated campaign webpage for potential investors, where members of the public can pre-register and receive email updates about the sale. This can be found atwww.gov.uk/lloydsshares.