The British government has scrapped plans for a retail sale of the 9% of Lloyds Bank the taxpayer still owns.
According to a statement by HM Treasury, the Chancellor, Philip Hammond announced that instead of a retail share offer the government will gradually offload its £3.6bn share in the bank over the next 12 months.
Selling shares through the trading plan represents good value for money for taxpayers, says the UK Financial Investments (UKFI).
Shares in Lloyds will be sold in an orderly and measured way. The trading plan has already been initiated and sales may commence in the coming days. The plan will be in place for approximately one year.
Morgan Stanley International will act as broker on behalf of HM Treasury.
The Chancellor, Philip Hammond said:
“Returning Lloyds to the private sector is in the interests of the bank, taxpayers and the country as a whole. That is why exiting our stake in Lloyds in an orderly way and at the best possible price is one of my top priorities as Chancellor.
“I have listened to the experts. Ongoing market volatility means it is not the right time for a retail offer.
“Our plan will get back all the cash taxpayers invested in Lloyds during the financial crisis and leave the bank in a better place to continue the crucial role it plays in supporting individuals, families and businesses up and down the UK.”