Member Article

Royal Mail privatisation to occur in "coming weeks"

The flotation of the Royal Mail will happen in “coming weeks” according to a government note to the London Stock Exchange.

The Government say the size of the stake to be privatised has not yet been decided and will be influenced by market conditions at the time of transaction.

Around 10% of the company will be made free to around 150,000 eligible UK-based Royal Mail employees at the time of listing under an employee free shares offer.

Members of the public will be able to buy Royal Mail shares through direct online or postal applications to the Government.

The Business Secretary, Vince Cable, said: “By announcing today that we intend to move ahead with a sale of shares in Royal Mail, we are completing the third and final part of the reforms agreed by Parliament two years ago.

“This delivers on the commitment in the Coalition Agreement to give Royal Mail access to private capital, including opportunities for employee ownership.”

Moya Greene, CEO of Royal Mail, said: “Our strategy is delivering a revitalised company, with a unique UK, multi-use network through which we are proud to deliver the universal postal service for all UK citizens.

“This network and our strong brand, coupled with the high service quality delivered by our people enable us to take full advantage of the growth in UK e-commerce to further enhance our pre-eminent parcels business.

“Combining this UK presence with our pan-European parcels business GLS, should result in a financial profile that combines revenue growth and margin progression to underpin strong cash flow generation.”

This was posted in Bdaily's Members' News section by Tom Keighley .