We bailed it out and basically bought it – and now we can can buy it all over again!
HM Treasury has announced today that a retail sale of Lloyds shares will be launched next spring, with applications available online and by post.
The taxpayer – you and me – saved Lloyds from collapsing at the height of the financial crisis in 2008 with a £20.5bn bailout, leaving the UK government with a 43% stake.
The Treasury has since recouped almost three-quarters of public funds used to rescue the bank by selling shares to institutional investors, and now it has announced plans for a public sell-off.
In a statement, HM Treasury said: “It is the government’s intention to fully exit from its Lloyds shareholding in the coming months, and as part of this at least £2bn of shares will be sold to retail investors. Members of the public will be offered a discount of 5% of the market price, with a bonus share for every 10 shares for those who hold their investment for more than a year. The value of the bonus share incentive will be capped at £200 per investor. People applying for investments of less than £1,000 will be prioritised.
All proceeds from share sales are used to pay down the national debt.
Military personnel and their spouses stationed overseas will be able to participate in the sale, where possible. This is in line with the government’s armed forces covenant, which ensures that members of the armed forces should not face disadvantage in the provision of public services.
HM Treasury has also launched a dedicated campaign webpage for potential investors, where members of the public can pre-register and receive email updates about the sale. This can be found at www.gov.uk/lloydsshares.
As always, share sales are dependent on market conditions.”
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