Lloyds Banking Group will be fully privatised once again next year after the British government revealed that it plans to sell off its remaining stake in 2016. They will also be offered one bonus share for every 10 shares they hold for more than a year, up to a maximum of £200-worth of bonus stock.
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All proceeds from the sale will be used to pay down the national debt.
In a bid to avoid wealthier investors snapping up the shares, anyone applying for less than £1,000 will be prioritised.
Lloyds needed to tap £20.5 billion from the public purse to avert collapse at the peak of the financial crisis in 2008, which left the United Kingdom government with a 43% stake.
At least £2bn of shares will be sold to retail investors.
The Government has been gradually selling shares off to institutional investors, but this marks the first chance for the general public to get involved.
However it will take much longer for the government to off-load its 73 per cent stake in Royal Bank of Scotland.
Richard Hunter, head of equities at Hargreaves Lansdown Stockbrokers, said the sale would attract investors, although he pointed out that the government was only offering a tiny chunk of the bank to the public.
“Nonetheless, it does provide a welcome opportunity for smaller investors to at least participate in a fraction of the sell-off, in what is now a well-regarded bank”, he said.
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From today people interested in buying shares can register at a dedicated website, www.gov.uk/lloydsshares, with the sale expected to happen next year.
