The UK government is prepared to sell a portion of its 39% stake in Lloyds Banking Group Plc (LON:LLOY), chancellor George Osborne said as quoted by Reuters.
At present, the UK is actively evaluating alternatives for disposing of Lloyds shares. The chancellor went on to say that the first sale would probably be to pension funds and other similar institutions. The state, however, will look into all other options for subsequent transactions.
The news agency noted that Lloyds’ stock is already trading above the state’s break-even price of GBP0.612 (USD0.946/EUR0.713) apiece.
The government will also think about breaking up part-nationalised lender Royal Bank of Scotland Group Plc (LON:RBS), but according to Osborne its re-privatisation is a long way off. The UK invested a combined GBP66bn into the two banks during the 2008 financial crisis. It now has an interest of 81% in RBS.