The Treasury has sold another chunk of its stake in Lloyds Banking Group, taking its holding in the bailed-out lender to below 21%.
The latest disposal of around 1% of the group represents stock worth more than £500 million at its latest market value.
The Government announced in December it planned an ''orderly and measured'' sell-off of up to 5% over six months, raising about £3 billion. This is being done in small parcels, rather than through larger tranches as had been done previously.
No shares are to be sold below the price the Government paid for them, which was 73.6p. Lloyds closed at 79p on Thursday night.
The Treasury has now recovered about £9.5 billion of its £20 billion bail-out funds but there are still just under 15 billion shares - equivalent to a stake of 20.95% and worth £11.8 billion - left to sell.
Chancellor George Osborne said recently he wants a further £9 billion of Lloyds shares to be sold over the next 12 months, including about £4 billion through a discounted offer to retail investors.
The stock market must be notified every time the Government's shareholding in the bank crosses a one percentage point threshold.
Lloyds Banking Group is due to issue a trading update next Friday, when profits should benefit from the recovering economy.
Brokers at Keefe, Bruyette & Woods estimate Lloyds first quarter underlying profits will lift by 16% to £2.1 billion as its asset quality and margins improve.
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