AKIPRESS.COM - Britain will sell a further 7.5% stake in Lloyds Banking Group, worth about $6.9 billion, via a placing to institutional investors, CNBC reported referring to UK Financial Investments (UKFI).

UKFI, which manages the government's stakes in Lloyds and Royal Bank of Scotland, said the sale would trim the government's stake in Lloyds to 25%.

The government began to offload its 39% shareholding in Lloyds last September, selling off a 6% stake to institutions such as pension funds and insurers.

That sale was seen as a milestone in Britain's recovery from the 2008 financial crisis, during which taxpayers pumped a combined $108.9 billion into Lloyds and RBS.

Britain's finance ministry said on Tuesday that its priority was “getting the best value for the taxpayer, maximizing support for the economy and restoring private ownership.”

Shares in Lloyds closed at $1.3 on Tuesday.

UKFI is expected to sell more shares later in the year in an offer which will include private retail investors. Sources familiar with the matter say that UKFI believes an offer to retail investors will be easier to execute once there is greater clarity over Lloyds' dividends prospects.