UKFI extends trading plan

UK Financial Investments Limited (UKFI) says it intends to continue to sell part of the Treasury’s shareholding in Lloyds Banking Group over the coming months.

The Trading Plan will continue to be managed by Morgan Stanley, who will have discretion to continue to effect a measured and orderly sell down of shares in the Company on behalf of the Treasury. 

Following the further extension, the Trading Plan will now terminate before the launch of the government’s retail sale of Lloyds shares, and no later than 30 June 2016.  The plan may be stopped earlier than 30 June 2016, for example, to ensure that HMT retains sufficient shares for the proposed retail offer, which is expected to be launched in the spring. 

The Trading Plan continues to include a provision that up to, but no more than, 15% of the aggregate total trading volume in the Company may be sold over the duration of the Trading Plan. The actual number of shares sold under the Trading Plan will depend on market conditions, among other factors.

As with all disposals, delivering value for money for the taxpayer is a key consideration and shares will not be sold below the average price per share paid for them. 

From the period beginning on 17 December 2014 to 3 December 2015, approximately 11.2 billion ordinary shares have been sold under the Trading Plan at an average price of greater than 81p per share. The Treasury currently owns approximately 6.6 billion ordinary shares in Lloyds, which represents approximately 9.2% of the issued ordinary share capital.

Exit mobile version