The latest sale takes the total amount of money raised through the trading plan that was launched in December 2014 to over £1bn.
All shares were sold above the average price paid by the previous government, which stood at 73.6p.
The sales and dividend announced by Lloyds last week is set to bring the total amount recovered from the bank to about £8.5bn.
UK Chancellor George Osborne said: "These sales are part of our plan to return Lloyds to the private sector and get taxpayers’ money back. The proceeds will be used to reduce the national debt."
The trading plan, which involves selling of shares in the market over time gradually, is expected to come to a conclusion no later than 30 June.
Lloyds declared that the government’s shareholding in the bank had crossed through a one percentage point threshold, as required by Financial Conduct Authority (FCA) rules.
Last month, the government sold £500m ($769m) of shares in Lloyds through the trading plan, in a bid to reduce its stake in the company in the run-up to May’s general election.
British financial institution Lloyds was formed through the acquisition of HBOS by Lloyds TSB in 2009 and its activities are organized into retail banking, commercial, life, pensions & insurance, and wealth & international.
Image: Lloyds Bank Building in King Street Manchester. Photo: courtesy of Pit-yacker
