Royal Mail share sale: Government launches sale of half its remaining stakeComments Off on Royal Mail share sale: Government launches sale of half its remaining stake
The Department for Business, Innovation & Skills (BIS) announced that it has launched an accelerated bookbuild – a share sale conducted in a short time period – comprising approximately 150 million ordinary shares in the parcel delivery service.
Details of the price and the final number of shares sold “will be announced in due course”, it added.
Bank of America Merrill Lynch, Goldman Sachs and J.P. Morgan have been hired to run the sale, while Rothschild is acting as an adviser to Royal Mail.
The placing comes less than a week after George Osborne unveiled a plan to offload the taxpayer’s remaining shareholding.
The proceeds of the sale will go towards paying down the national debt.
BIS said that it would not sell any more shares in the company for 90 days following completion of the bookbuild.
The government first sold off part of Royal Mail in October 2013 through a controversial flotation in which retail investors were able to participate.
The stock listed at 330p and surged shortly afterwards, leading to accusations that the government had been overly cautious, taken poor quality advice and shortchanged the taxpayer.
Royal Mail shares closed at 516.5p today.