UK government to sell Lloyds in 2014

30th Dec 2013 07:44

The UK government could sell its 33 per cent stake in Lloyds Banking Group in 2014, sources told The Telegraph.The government's holding, currently worth £18.4bn, is understood to be sold off within the next 12 months. It will be sold through a combination of institutional sales and a nationwide offering to the public.The news comes three months after Chancellor George Osborne authorised the sale of a 6% stake in the lender to institutional investors - the first sale since the government bailed it out in 2008. Following the success of the first sale, which raised £3.2bn, there is mounting speculation of a repeat sale within months.It is expected to come after the bank reports its full-year financial results on February 13th, paving the way for a larger final offering of the shares in autumn."Post-results is when a further institutional offering would make most sense. After that, the thinking is [that] an autumn sale, combining an institutional and a retail segment, is a realistic prospect," on source told the UK newspaper. Lloyds shares ended last week at 78.84p, valuing the bank at £56.4bn.RD