Question

To ask the Secretary of State for Business, Innovation and Skills, what discussions took place between (a) Ministers in his Department, (b) officials, (c) the Financial Adviser to HM Government and (d) the banking syndicate working on the privatisation of Royal Mail with priority investors on the length of time shares in the privatised business would continue to be held.

We did not seek assurances from priority investors on the length of time that they would hold the Royal Mail shares that they bought.

Our intention was to ensure that RM started out with a core of long-term, stable investors who understood the business, along with some hedge fund participation to ensure liquidity in the aftermarket. We achieved that.

We did not expect the shareholder register to remain static. Some investors have sold their shares, presumably because the share price reached their target price. Others have bought shares. There is still a wide range of views on the value of this company.