UKFI to Sell Further Part of Lloyds Banking Group

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UKFI to Sell Further Part of Lloyds Banking Group

As a result of the placing, the overall size of HM Treasury's shareholding in the company will be reduced from approximately 32.7% to around 25%.

UK Financial Investments (UKFI) the government-mandated company which manages HM Treasury's shareholdings in banks subscribing to its recapitalisation fund, has announced its intention to sell a further part of HM Treasury's shareholding in Lloyds Banking Group plc. The disposal of these shares will be by way of a placing to institutional investors.

The price at which the placing shares are sold will be determined by way of an accelerated book building process. The book will open with immediate effect following this announcement.

The placing is expected to comprise approximately 5.35 billion of the company's ordinary shares, representing approximately 7.5% of the issued ordinary capital of the company. As a result of the placing, the overall size of HM Treasury's shareholding in the company will be reduced from approximately 32.7% to approximately 25%. UKFI and HM Treasury have undertaken to the bookrunners named below not to sell further shares in the company for a period of 90 calendar days following the completion of the placing without the prior written consent of a majority (by participation) of the bookrunners.

Bank of America Merrill Lynch, J.P. Morgan Securities plc, Morgan Stanley Securities Limited and UBS Limited have been appointed to act as bookrunners in connection with the placing.

Lazard & Co., Limited is acting as capital markets adviser. Freshfields Bruckhaus Deringer LLP is acting as legal counsel to UKFI in respect of English and US law.

Details of the placing price and the number of placing shares will be announced in due course.

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