Exclusive: Ministers Target Early Royal Mail Sale

[TrueBlueTerrier]

http://news.sky.com/story/1021161/exclu ... -mail-sale" onclick="window.open(this.href);return false;

The Government is mulling the sale of a stake in Royal Mail before it presses the button on a stock market listing valuing the company at several billion pounds.

I understand that Royal Mail executives have raised the idea of a 'pre-IPO [initial public offering]' share sale to an investor or group of investors during meetings with investment bankers in recent days.

Such a move could generate an earlier-than-expected windfall for the Exchequer of tens or even hundreds of millions pounds ahead of a full privatisation of the postal operator.

If they decide to proceed with such a move, it's conceivable that a minority stake in Royal Mail could be sold during the first half of next year.

Such a transaction would probably be contentious, however, since raising capital through a one-off minority share sale to an outside investor would be more expensive for the taxpayer than through a stock market listing.

Royal Mail is one of the few remaining state-owned assets whose sale would hand the Government anything more than loose change.

George Osborne, the Chancellor, is searching for as much revenue as he can generate from the sale of publicly-owned assets. The Treasury's coffers have already been bolstered (artificially, in the eyes of many analysts) from the transfer of Royal Mail's historic pension deficit onto the Government's balance sheet.

Royal Mail's management is also advancing preparations for a potential stock market flotation by lining up a group of City advisory firms.

Moya Greene, the company's chief executive, has been aggressively restructuring the business since she took over two years ago.

This week, the company faced the historically-familiar threat of industrial action amid suggestions that Royal Mail staff could boycott the delivery of rivals' post.

Royal Mail declined to comment on the progress of the Government's privatisation plans.

[fishtank]

Royal Mail executives have raised the idea of a 'pre-IPO [initial public offering]' share sale to an investor or group of investors during meetings with investment bankers in recent days.

Possible management stake?
The invisible man has the contacts to finance it.

[fmrPOSTIE]

Moya Greene the same person who said a sel-off would be very difficult a couple of years ago. Royal Mail aint guna be sold off, its operating in a declining market. No private investor will touch it not in this period of Austerity. (Up t 2018 at least).

[clashcityrocker]

Royal Mail is one of the few remaining state-owned assets whose sale would hand the Government anything more than loose change.

So what are the others?

The departments of Defence and Transport own the most assets. Defence has £93.4bn, including £29.1bn of "one-use equipment" including £1.6bn of guided missiles and bombs.

Transport has £81bn, the vast majority of which is infrastructure, including the motorways, which are worth £18.6bn.

It has also unearthed the amount of brownfield land owned by local authorities – around 11,331 acres. To put that into context, that amount of land has the capacity for more than 87,000 houses, which would be worth £13.4bn based on median house prices.

[fishtank]

Royal Mail is one of the few remaining state-owned assets whose sale would hand the Government anything more than loose change.

So what are the others?

All of the toxic debt and mortgages that came with Northern Rock and RBS.

The extremely toxic Nuclear Industry.

Network Rail.

The Royal Family.

Any offers?

[borders]

ive got a bit of loose change in my pocket .......



nah , keep em

[fmrPOSTIE]

Royal Mail (PFWW & RML)
Royal Mint
Direct Rail Services
NATS
Eurostar
Channel 4