UK Financial Investments Limited (UKFI) is responsible for managing the Government's shareholding in Lloyds Banking Group. Consistent with its mandate, UKFI was responsible for devising and executing the recent share sale. The Chancellor took the final decision to proceed with the sale.

UKFI appointed a number of banks to assist in selling the shares. These included three “Bookrunners”, who were responsible for placing shares with investors; a privatisation strategy adviser whose role was to complement UKFl's expertise in devising strategies for realising value for the Government's shareholdings in the banks; and an independent capital markets adviser.

Banking fees on transactions like this, including those executed by other Governments, are typically a percentage of the total size of the transaction, which in this instance could have amounted to several million pounds in fees being paid. However, for this sale the total fees paid to these institutions amounted to only £5, which is £1 each for the Bookrunners, the privatisation strategy adviser and the independent capital markets adviser, so was a very good deal for the taxpayer.

In addition, as part of the legal contracts with the Bookrunners, UKFI negotiated a sharing arrangement whereby HM Treasury received over £1.1 million from the commissions that the Bookrunners earned from buyers of the shares.

The Government do not estimate expected proceeds from individual asset sales. To do so would prejudice the Government's commercial position in ongoing and future sale processes. In assessing any potential sale a priority for the Government, alongside ensuring the protection of our security and non-proliferation interests, will be to achieve value for money for the British taxpayer.

The timing of any proposed sale has not yet been determined and will be conditional on a number of factors, including further discussions with our Urenco partners. Further announcements will be made in due course.

The Government is continuing to discuss the possibility of a sale of some or all of the UK shareholding in Urenco with the Dutch and German Governments and shareholders. These discussions are being supported by legal and financial advisers. No final decisions have yet been taken and any decision to sell will be subject to maintaining protections in the areas of nuclear non-proliferation, safety and security, as well as ensuring any transaction delivers value for money for the tax payer.