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UK government could fast track Lloyds' sell-off

UK government could fast track Lloyds’ sell-off

(18 July 2016 – United Kingdom) Some banking industry experts expect that the new UK government, led by Theresa May, could fast-track the sell-off of Lloyds Banking Group, discarding George Osborne’s plan for a sale to retail investors.

Although Osborne was taking a ‘wait and approach’ to the privatisation, and holding out for a share price above the bailout level 73.6 pence, incoming Chancellor Philip Hammond may want to sell the bank more quickly, raising cash and removing one painful hangover from the financial crisis, banking sources believe.

Additionally, the ex-Chancellor’s idea to offer retail investors a discount on the stock may also be shelved. Osborne critics at the time said it was a play to gain more election votes.

Thus far, the Treasury has received £16 billion (A$27.9 billion) from selling shares in the bank, plus more than £500 million from fees and dividends. However, a target of £20 billion must be reached recover the bailout cost.

As the government still owns 9 percent of the bank, worth £3.6 billion, it could break even overall by selling the shares at anything above 54p.

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