Lloyds share sale: UK Government sells a further 1% taking publically owned stake to single digits

This takes the publically-owned stake below 10 per cent for the first time

The Government has trimmed its stake in Lloyds a further 1 per cent.

This takes the publically-owned stake below 10 per cent for the first time ahead of a final sell-off to the public in the spring.

Lloyds was bailed out to the tune of £20.5 billion by the Government after the financial crisis in 2008. So far, £16 billion of this has been recouped.

The share sale comes a day after Lloyds results. Underlying pre-tax profits came in below analysts’ expectations at £2 billion, compared to £2.2 billion a year ago. It also released a final bill of £13.9 million for compensating customers that were mis-sold PPI insurance.

Shares have so far been available to institutional investors in a steady drip of tranches of 1 per cent. But £2 billion-worth will be made available to the public early next year at a 5 per cent discount as the government seeks to sell off its final stake.

Those looking to invest less than £1000 will be given priority. There’s also a one-for-10 bonus share for anyone who hangs onto the stock for a year.

The Government started selling shares in September 2013 and should fully exit next year, in what is billed as the biggest privatisation in British history.