The UK government has unveiled plans to sell at least £2bn ($3.04bn) worth of shares in Lloyds Banking Group to retail investors in early 2016 as part of a strategy to return the bank to full private ownership.
The shares would be offered to investors at a 5% discount to the market price, with investors purchasing less than £1,000 of shares to be priortised, the UK Treasury said in a statement.
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Investors holding their investment for over a year would be offered a bonus share for every 10 shares.
The value of the bonus share incentive would be capped at £200 for each investor, the statement added.
The proceeds from selling the shares would be used to reduce the national debt.
Lloyds was bailed out by UK taxpayers during the financial meltdown in 2008, with the government taking a 43% stake. The government began offloading the stake from the end of 2013 and currently holds below 12% of the bank’s stake.
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