What is the update on preference shares?
On 7th March 2009, Lloyds Banking Group announced that it had reached agreement to replace £4 billion of preference shares held by HM Treasury with new ordinary shares to be offered to existing shareholders on a pre-emptive basis. The associated Placing & Compensatory Open Offer received shareholder approval on 5 June 2009. Subsequently, on 8 June, the Group announced that approximately 87 per cent of the total number of Open Offer shares were subscribed to by qualifying, existing shareholders. The remaining 13 per cent of Open Offer shares not taken up through the Placing & Compensatory Open Offer were placed in the market and were all subscribed for at a premium to the issue price. As a result, HM Treasury’s holding in Lloyds Banking Group remains unchanged at approximately 43.4 per cent of the enlarged issued ordinary share capital of the Company. Commenting at the time, Eric Daniels, Group Chief Executive, Lloyds Banking Group “We would like to thank our investors for their support
