Sorry if I'm being stupid

[db]

This privatisation was meant to give us opportunity to get outside investment to help modernise the business.

Who gives us this money?!

[TrueBlueTerrier]

This privatisation was meant to give us opportunity to get outside investment to help modernise the business.

Who gives us this money?!

Nobody will give Royal Mail the money

Basically the business takes a punt and uses the share value as a guide to future viability when applying for loans. Just like when you get a loan for a car, they check previous credit history to get an idea what kind of risk you are, and how much you earn/spend to make sure you can repay. Its 2nd hand car selling writ large .

[db]

This privatisation was meant to give us opportunity to get outside investment to help modernise the business.

Who gives us this money?!

Nobody will give Royal Mail the money

Basically the business takes a punt and uses the share value as a guide to future viability when applying for loans. Just like when you get a loan for a car, they check previous credit history to get an idea what kind of risk you are, and how much you earn/spend to make sure you can repay. Its 2nd hand car selling writ large .

As so basically it was a lie

[freelunch]

This privatisation was meant to give us opportunity to get outside investment to help modernise the business.

Who gives us this money?!

The privatised company could issue bonds allowing it to borrow at low rates, do a deal with private equity to sell and lease back property, borrow from banks, issue new shares or some combination.
There's actually lots of options for a company which has a strong cash flow like RM to raise money in the markets.
I doubt it will take long for them to load up the "investment" truck, (or load down the company with debt)
In the "New Normal" economy debt is an asset
That is, until interest rates rise.......

...at which point they will claim "unexpected interest expenses" mean thousands of job losses