At the height of the financial crisis in 2008, the government recapitalised a number of british banks, one of which was Lloyds. Directly after this recapitalisation, the government owned 43% of Lloyds. The holding has come down to just under 10% today after a number of sales to institutional investors. The government has committed to a substantial retail tranche when they finally exit.
The government will be making shares in Lloyds Banking Group available for sale to the general public as part of its plan to fully exit from its stake in Lloyds Banking Group in the future. The timing of the offer will be kept under review in light of market conditions. The late Chancellor of the Exchequer, George Osborne in January 2016 postponed the sale of Lloyds Banking Group shares to the public when the share price fell to 64p.
The Lloyds offer in brief
Stock available to individuals located in the UK
Discount of 5% on the market price
Applications for less than £1,000 shares to be given priority
If you hold your shares for over a year you will receive an additional share for every 10 bought, up to a value of £200
Goverment break even price is 73.6p
Lloyds in brief
Lloyds Banking Group is a leading UK based financial services group providing a wide range of banking and financial services, focused on personal and commercial customers.
The Group’s main business activities are retail, commercial and corporate banking, general insurance, and life, pensions and investment provision.
The Group operates the UK’s largest retail bank and has a large and diversified customer base.
Services are offered through a number of well recognised brands including Lloyds Bank, Halifax, Bank of Scotland, and Scottish Widows, and a range of distribution channels. This includes the largest branch network in the UK and a comprehensive digital, telephony and mobile services.
Lloyds Banking Group is quoted on both the London Stock Exchange and the New York Stock Exchange and is one of the largest companies within the FTSE 100.