UKFI Announce Trading Plan in Lloyds Banking Group

Intention to sell shares in Lloyds Banking Group plc through a trading plan

UKFI today announces that it intends to sell part of Her Majesty's Treasury's ("HMT") shareholding in Lloyds Banking Group plc (the "Company") over the next six months through a pre-arranged trading plan that will be managed by Morgan Stanley & Co. International plc ("Morgan Stanley").

Under the trading plan, Morgan Stanley will have full discretion to effect a measured and orderly sell down of shares in the Company on behalf of HMT.

Following the publication of the Bank of England stress tests yesterday, the trading plan has been entered into today; however, it is possible that sales may not commence until the New Year. The trading plan will terminate no later than 30 June 2015. HMT has instructed Morgan Stanley that up to but no more than 15% of the aggregate total trading volume in the Company is to be sold over the duration of the trading plan. The number of shares sold under the trading plan will depend on market conditions, among other factors. As with all disposals, delivering value for money for the taxpayer is a key consideration and shares will not be sold below the average price per share that the previous government paid for them.

HMT currently owns 17.8 billion ordinary shares in the Company, which represents 24.9% of the issued ordinary share capital of the Company.

J.P. Morgan Cazenove is acting as Privatisation Strategy Adviser to UKFI. Freshfields Bruckhaus Deringer LLP is acting as Legal Counsel to UKFI in respect of English and US law.

"As with all disposals, delivering value for money for the taxpayer is a key consideration and shares will not be sold below the average price per share that the previous government paid for them."

Can you remind us what that average is boys and gals?

73.6p.

Break Even

Thanks Skinny, call it 74 with the spread.

Just another piece of silver to prop up George's economics.

If it is worth buying then it must be reasonable to keep "nationalise" and the future profits could be ploughed back into the public purse, rather than Cameron's friends, city fraudsters and Morgan Stan.

"If it is worth buying then it must be reasonable to keep "nationalise" and the future profits could be ploughed back into the public purse"
I don't see the logic. HMG stake in LLOY was not an investment, it was a bailout, with interest and they (HMG) always said that it is not their policy to invest in private companies nor to remain in LLOY or RBS any longer than necessary. Additionally, until HMG have been repaid for their loan (incl substantial interest) we, the private punters are not going to see any kind of divi which also means that this stock is going to be off the radar of pension funds etc. Roll on the day when HMG is all paid off!

You can still have the joint management and dividends, based on the private and public share.

But the Bank and share holders were bailed out by the public after private incompetent management.

The tax payer in my mind is entitled to a decent and ongoing return for doing so.

Same management with full public oversight.

The more it prospers the more the management and shareholders prosper and also the general public.

I quite agree Harry - the 'potential' left in these is the 'imminent dividend declaration ( JAN ?)'

Investec Buy 76.15 85.00 85.00 Upgrades

Well I wish the price would move with "opinion".


2 Jan Investec 85.00 Buy
18 Dec Shore Capital N/A Hold
17 Dec Societe... 96.00 Buy
17 Dec Exane BNP... 115.00 Outperform
17 Dec Deutsche Bank 97.00 Buy
16 Dec Shore Capital N/A Hold
16 Dec Credit Suisse 72.00 Neutral
10 Dec Deutsche Bank N/A Buy
9 Dec Citigroup 82.00 Neutral
8 Dec Exane BNP... 115.00 Outperform

Results due on 27th February.

Surely, what's stopping the price going up just has to be the fear of further still secret hidden calamity from either bad debts or poor selling of bank services or such as insider dealing or other 'fiddles' going on?

You are getting worse than I am.

Financial Calendar

Results 27th February.

City view: Why Lloyds is top bank

"We see Lloyds (LLOY) remaining the best capitalised UK bank with its current CT1 of 12% rising to 14% by 2016 despite the payout of 9.3p in 'cumulative' DPS over the period and a '16E div yield of 6.4%."

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I wish somebody else would see the value of this bank 8-)

Final results Friday 27th February.

The Commissioners of Her Majesty's Treasury < 24%

17 Feb Morgan Stanley 100.00 Overweight