Government sells final stake in Royal Mail

The government said arrangements were underway to give the final 1 percent shareholding to Royal Mail’s eligible United Kingdom staff.

It took their total stake to 12%.

The Department for Business, Innovation & Skills said it had completed the disposal of about 13% of the issued share capital in Royal Mail to institutional investors. He had stated the government’s intention to raise about £32bn (€43.1bn, $49bn) in the current financial year from major asset sales.

Mr Javid added that proceeds from the sale will be used to help pay off the national debt.

June 4, 2015: the Chancellor announced that the Government will sell its remaining shares in Royal Mail.

The company operates a wide network of branches throughout the United Kingdom and the relationship between the company and Royal Mail are a commercial one, it said.

The placing price was 455p per share, resulting in proceeds from the sale of the placing shares of £591.1mln.

In the past the government has faced criticism for pricing Royal Mail shares too low at its IPO.

The completion of Royal Mail’s privatization is a “milestone moment”, Osborne said in a tweet.

The final holding was disposed of overnight – with 13% of the company achieving £591m for the taxpayer.

‘By their actions today they have made it abundantly clear that they are only interested in privatisation dogma and making the rich richer – even when their actions place public services at risk.

The five-centuries-old Royal Mail was privatised in 2013, when the government sold about 70-per cent stake in the postal service at a price of 330 pence through a London initial public offering (IPO), an over-allotment option and a free employees’ share of 10 per cent. The two institutions are linked by at ten year contract signed in 2012 that says that Royal Mail will deliver through Post Office services.