UK Financial Investments (UKFI) was created in November 2008 as part of the UK’s response to the financial crisis.
UKFI is responsible for managing the Government’s shareholdings in The Royal Bank of Scotland Group plc and Lloyds Banking Group plc. UKFI is also responsible for managing the Government’s 100% shareholding and loans in UK Asset Resolution Ltd (“UKAR”) and its subsidiaries. UKAR was formed during 2010 to integrate the activities of Northern Rock (Asset Management) plc and Bradford & Bingley plc. UKFI managed the Government’s 100% shareholding in Northern Rock plc from Northern Rock plc’s formation on 1 January 2010 up to its sale to Virgin Money on 1 January 2012.
UKFI’s overarching objective is to manage these shareholdings commercially to create and protect value for the taxpayer as shareholder and to devise and execute a strategy for realising value for the Government’s investments in an orderly and active way over time within the context of protecting and creating value for the taxpayer as shareholder, paying due regard to the maintenance of financial stability and acting in a way that promotes competition.
UKFI is a Companies Act Company (Company no: 6720891), with HM Treasury as its sole shareholder, and operates at arm’s-length from Government. More detail on UKFI’s role, remit and ownership approach is set out in our Framework Document and Investment Mandate.
Intention to sell shares in Lloyds Banking Group plc through a trading plan
UKFI today announces that it intends to continue to sell Her Majesty’s Treasury’s (“HMT”) shareholding in Lloyds Banking Group plc (the “Company”) over the next twelve months through a pre-arranged trading plan that will be managed by Morgan Stanley & Co. International plc (“Morgan Stanley”).
Dividend payment received today
UKFI announces that HMT will today receive c.£130m in dividend payments, in respect of its shareholding in Lloyds Banking Group Plc. This takes total proceeds received from the Government’s investment in LBG to £16.888bn.