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Government to sell remaining 14% stake in Royal Mail to investors | Government to sell remaining 14% stake in Royal Mail to investors |
(about 1 hour later) | |
The Government is selling the last 14% of its holding in Royal Mail to professional investors, two years after its initial privatisation. | The Government is selling the last 14% of its holding in Royal Mail to professional investors, two years after its initial privatisation. |
It will start the process immediately. | It will start the process immediately. |
At its Monday price of 470.3p, the Government's stake is valued at £660m. There was no market reaction as the announcement came after the close of daily share trading. | At its Monday price of 470.3p, the Government's stake is valued at £660m. There was no market reaction as the announcement came after the close of daily share trading. |
Royal Mail's privatisation was heavily criticised after the shares almost doubled from their initial valuation. | Royal Mail's privatisation was heavily criticised after the shares almost doubled from their initial valuation. |
The Department of Business, Innovation and Skills wrote: "Current market conditions should allow a successful sale and the realisation of value for the taxpayer. | |
"The universal postal service is strongly protected by law and Ofcom has a duty to ensure its provision. Therefore the government sees no policy reason to retain a stake in Royal Mail." | |
In June, the Government sold a similar-sized stake, which raised £750m. | In June, the Government sold a similar-sized stake, which raised £750m. |
As part of that sale, postal workers received a 1% stake in the company worth about £50m, in addition to the 10% given to them when the government started its sell-off in 2013. | As part of that sale, postal workers received a 1% stake in the company worth about £50m, in addition to the 10% given to them when the government started its sell-off in 2013. |
It said in the summer that it intended to divest the rest of its holding before the end of the financial year. | It said in the summer that it intended to divest the rest of its holding before the end of the financial year. |
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