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British government sells rest of Royal Mail stake
Posted On Oct 16 2015
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There was a big stink when the United Kingdom government sold off the first 60% stake in Royal Mail back in 2013, as the price of the newly issued shares nearly doubled from the price of the IPO within just a few months.
June 11, 2015: the Government sold about 50 per cent of its then existing stake, amounting to approximately 15 per cent of the company, at 500p per share raising £750 million.
This means the nation’s money bank has been boosted by a total of £3.3bn from the Royal Mail privatisation, a controversially low price given the size and scale of the operation and its vast bank of existing property.
He added: ‘By fully leaving state ownership we have a win all round – for customers, the workforce and the taxpayer.
Tory leaders celebrated the move, with Business Secretary Sajid Javid calling the sale “the right step for the Royal Mail, its customers and the taxpayer”.
“A week ago (Labour leader) Jeremy Corbyn spoke to thousands of people calling on the government to protect the People’s Post at the CWU’s rally in Manchester – today the government has announced they are selling the final public stake in Royal Mail to their friends in the City”.
September 17, 2015: 1 per cent of the Government’s shareholding was transferred to a Royal Mail Share Incentive Plan as gift to eligible United Kingdom employees to reward them for hard work in turning round the company.
The Communication Workers Union has described the latest sale as a “disgrace”.
Royal Mail stock fell as much as 4.9 per cent to 449 pence and was about that level at 9am in London. Shares debuted at 330p, but skyrocketed to over 600p at the beginning of 2014.
It took their total stake to 12%.
Britain on Tuesday completed the privatisation of the Royal Mail (LSE: RMG.L – news), offloading its final stake in a sale whose proceeds will be used to cut the national debt.
‘The Tories have instead chosen an ideological course that puts the fundamental ethos of a centuries-old national institution in jeopardy’.
