Lloyds: Osborne Plans Taxpayer Stake Sale
The Government will signal today that it will begin the sell-off of its stake in Lloyds Banking Group when the lender's share price hits 61p - a far lower level than previously thought.
I have learnt that UK Financial Investments (UKFI), which manages the taxpayer's 39% stake in Lloyds, and the Treasury will indicate today that the privatisation of the Government's stake can begin within months.
The 61p level is the price at which the stake - bought in 2008 at the height of the banking crisis - is booked at in the national accounts.
The £1.48m bonus awarded to Lloyds boss Antonio Horta-Osorio can vest if the Government sells at least one-third of its stake above 61p, Lloyds confirmed today.
"This award is subject to the normal performance adjustment policy and will only vest if a share price of 73.6p has been reached for a given period of time or the Government has sold at least 33% of its shareholding at prices above 61p," Lloyds said, confirming a report on Sky News.
"The board believes that these additional conditions are in the interests of all shareholders and support our common aim of repaying the taxpayer.
"HM Treasury has informed us that 61p is the average price at which the equity support provided to Lloyds Banking Group is recorded in the Public Finances."
The news comes as Lloyds reported a loss for last year of £570m, down from £3.5bn in 2011.
The loss was attributable to a £3.5bn provision during 2012 for mis-selling payment protection insurance, £1.5bn of which was taken during the fourth quarter.
Lloyds paid out £365m in bonuses for the year, with an employee average of £3,900.
:: The FTSE 100 share price for Lloyds Banking Group dropped almost 6% to 51.2p in late morning trades on Friday.
what do you think?
£80 Charge for going overdrawn by a fiver!?! I want my shares please.
He's going to sell at a loss- typical Tories why can't he hang on and make a bit on it
How can he sell us something we already own?
He read the Margaret Thatcher " how to hoodwink the electorate" book.