Government to sell GBP2bn stake in Lloyds to private investors

5th Oct 2015 08:06

(ShareCast News) - The Government will start offering portions of its stake in Lloyds Banking Group to private investors in spring 2016.HM Treasury announced on Monday at least £2bn of shares will be available for sale as it tries to offload its remaining 13% stake.The public will be offered a 5% discount off the market price, with those applying to invest less than £1,000 being given priority.Investors who hold their investment for more than a year will also receive a bonus share for every 10 shares up to a cap of £200.In 2008, the government bailed out Lloyds Bank at the height of the financial crisis with a £20.5bn package, leaving it with a 43% stake.Almost three-quarters of public funds used to rescue the bank have been recovered by the treasury by selling shares to institutional investors.Lloyds shares were up 1.01p at 0819 BST to 77.56 on the back of the news.