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Treasury to cut Lloyds Banking stake to 32%
by Sarah Miloudi on Sep 16, 2013 at 16:52
Around 6% of the Treasury's stake in Lloyds is to be put up for sale, according to an announcement made to the stock market.
In a brief statement, Lloyds investors were told that the UK government would cut its holding in the bank to 32.7%, in a move that will bring it down from just over 38%.
The government said it intended to place 4,282,034,109 shares with institutional investors. The sale comes around a month after the bank returned to profit and looked for approval to re-start its dividend payouts.
Reporting to shareholders in August, Lloyds said it had bounced back into the black during the first six months of the year, and posted pre-tax profits of £2.1 billion.
That compared to a loss of £456 million a year ago. Lloyds' return to profit was widely interpreted as a sign it would soon return to private ownership after the Treasury took on a 39% stake during the credit crisis.
UK Financial Investments did not comment on the timing of the sale. Shares in the bank were trading at 77.3p following the announcement, up 0.98% on Friday's close.
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