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The government had said it expects to generate £2.08 billion through the sale of its 25 per cent stake in power company British Energy.

Two days after first announcing its plans, the Department of Trade and Industry (DTI) says the share offering has been completed.

Priced at 520p each, 400 million ordinary shares are to be sold.

The government retains a near 40 per cent stake in British Energy, which it acquired five years ago with the utility on the verge of dissolution.

According to trade and industry secretary Alistair Darling, the DTI intends to use the proceeds of the sale to build a new generation of nuclear power stations in the UK through British Energy's nuclear liabilities fund (NLF).

"The net proceeds from the sale will go to the NLF, helping to ensure that it is better placed to meet its obligations in relation to the eventual decommissioning costs of British Energy's existing nuclear power stations," a statement released today said.

"This meets the government's intention, set out last year, to diversify the assets of the NLF."

British Energy, which announced full-year profits of 44 per cent on Wednesday, currently owns eight nuclear power stations.

A further 50 million shares could be shed by the government as part of its announcement earlier this week, although the DTI intends to retain an interested in the firm of at least 29.9 per cent.