Britain would sell a 6% stake in part state owned Lloyds Banking Group in a deal valued at least GBP0.50 per share. This would raise more than GBP3.2 billion, according to three sources familiar with the transaction.
UK Financial Investments launched the government's share sale in Lloyds earlier last Monday. The sell off was a milestone for the country as it recovers from the 2008 global financial crisis. During the same period, taxpayers pumped a combined GBP66 billion pounds into Lloyds and Royal Bank of Scotland to keep it afloat.
A Treasury spokesperson said, "We want to get the best value for the taxpayer, maximize support for the economy and restore them to private ownership."
Britain pumped GBP20.5 billion into Lloyds during the crisis which left taxpayers holding a total of 38.7% percent stake in the financial lender. However, the sale would reduce taxpayers' stake to 32.7%.
Bernstein analyst Chirantan Barua said, "It's a great signal it has been kicked off, the wheels have started to turn."
At the trading close last Monday, Lloyds' shares were at GBP0.7736 which is higher compared to when the government bought it for GBP0.736.
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