The Treasury said that the government would sell its remaining 12% stake in the bank in the coming months.
As part of this, a sale aimed at private investors will be launched next spring.
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Members of the public will be offered a 5% discount to Lloyds’ market price and small investors seeking shares worth less than £1, 000 will get priority.
Those who keep their shares for at least 12 months will get one bonus share for every 10 they own.
