After bailing out the bank at the height of the credit crunch of 2008, Her Majesty's Treasury's (HMT) currently owns 6,338,753,194 ordinary shares in the company, which represents a 54.7% stake.
A trading plan entered into with Morgan Stanley will see share sales begin from 12 August, following the expiry of the lock-up period agreed at the last disposal in May.
UK Government Investments Limited (UKGI) said it has instructed the investment bank that the intention is for “up to, but no more than, 15% of the aggregate total trading volume in the company will be sold” in this plan.
The government department has stipulated that shares may not be sold below a price per share that UKGI and HMT decide “represents fair value and delivers value for money for the taxpayer throughout the term of the trading plan”.
The actual number of shares sold on any day under the plan will depend on market conditions, among other factors, it added.
Following or even during the 12-month period of the plan, HMT and UKGI may mull other ways of selling down the remaining stake, including buybacks and/or accelerated bookbuilds.