InvestmentsJun 1 2015

Chancellor extends Lloyds share trading plan

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Chancellor extends Lloyds share trading plan

Chancellor George Osborne has extended the Lloyds Banking Group’s trading plan for a further six months, as part of the next stage to return Lloyds to private ownership and get taxpayers’ money back.

In an announcement today (1 June) the government said it has sold a further 1 per cent of Lloyds shares through the trading plan.

The latest sales mean that the government has recovered almost £3.5bn, bringing the total recovered from Lloyds to over £10.5bn, with the state stake now below 19 per cent.

The trading plan, launched in December 2014, was due to end no later than the 30 June this year, but will now run to no later than 31 December 2015.

Shares have been sold through the trading plan for an average price of over 80pence, well above the average 73.6p originally paid. According to the London Stock Exchange, Lloyds’s shares are currently trading at 88.44p, up 0.77 per cent on Friday’s close.

Mr Osborne said he was determined to get on with the job of returning Lloyds to private ownership.

“That’s why I’m extending the plan for six months so that we can make even more progress in returning money to the taxpayer and paying down the national debt.”

Shares will only be sold through the trading plan where this objective is met, and will not be sold for less than the price paid for them.

Further sales as a result of extending the trading plan will contribute towards meeting the commitment Mr Osborne made at the Budget to sell at least a further £9bn of Lloyds shares in 2015-2016.

The government will launch a share sale which will be open to retail investors in the next 12 months. Further details will be set out in due course.

In March it was confirmed that another £500m of Lloyds shares were sold. Morgan Stanley will continue to act as broker on behalf of the Treasury to execute the trading plan.

peter.walker@ft.com