The Secretary of State for Business, Innovation and Skills and President of the Board of Trade (Sajid Javid)
The Government have made a further sale of Royal Mail plc shares equivalent to 13% of the company, at a price of 455p pence per share. The Government will also take this final opportunity to reward Royal Mail’s eligible UK employees for their hard work and will gift a further 1% of the company to them.
These disposals will complete the disposal of all of the Government’s shareholding and the company is now for the first time wholly owned by a combination of employees and private investors.
Following independent financial advice, the Government decided to sell their remaining shareholding in Royal Mail. The shares were sold through an accelerated bookbuild which enabled Government to realise value for the taxpayer.
The disposal has raised £591.1 million which will be used to help pay down the national debt.
There is no policy need for Government to hold shares in Royal Mail as the universal postal service remains well protected by law and by Ofcom.
Royal Mail has demonstrated that it can thrive in the private sector. It now has the ability to access the funds it needs to ensure that it has a sustainable future and can adapt to the changes in the postal market.
We will be liaising with Royal Mail about the arrangements for the further gift of shares to Royal Mail’s UK employees and will inform the House of the details when these have been finalised.
Post Office Ltd, which operates the network of branches throughout the UK, remains wholly owned by Government and was separated from Royal Mail in April 2012. The relationship between the Post Office and Royal Mail is a commercial one and a 10-year contract for the delivery of Royal Mail services through post offices was put in place in 2012.
[HCWS228]