U.K. Said to Start $4.7 Billion Royal Mail IPO Next Month

[TrueBlueTerrier]

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The U.K. government is targeting September to start the sale of a majority stake in Royal Mail Group Ltd., the 360-year-old postal service, according to three people with knowledge of the matter.

Royal Mail may announce the intention to float in the middle of the month and the initial public offering could open for investors in October, with a potential valuation of about 3 billion pounds ($4.7 billion), the people said, asking not to be identified as the details aren't public yet.

The U.K. plans to sell Royal Mail during the current financial year and hasn't decided on specific timing, the Department for Business said in an e-mailed statement.

Companies including theme park operator Merlin Entertainments Group Ltd. and real estate broker Foxtons Ltd. are lining up IPOs in London, people familiar have told Bloomberg News. The listings may benefit from a pickup in U.K. economic growth, which accelerated in the second quarter more than initially forecast, according to data released today.

The government aims to stagger the Royal Mail IPO with two other large share sales planned for the coming months, one of the people said. The U.K. is considering selling about 5 billion pounds of Lloyds Banking Group Plc, Britain’s biggest mortgage lender, as early as September, a person with knowledge of the plan said in July. Barclays Plc, the U.K.’s second-largest lender by assets, is also planning a 5.8 billion-pound rights offering next month.

A Royal Mail spokeswoman declined to comment on the timing or size of the IPO.

The government plans to dispose of a majority stake in Royal Mail, including 10 percent of shares that employees will receive for free, Business Secretary Vince Cable said in July.

The sale of Royal Mail will be the largest privatization in Britain since former Prime Minister John Major broke up the country’s railway in the 1990s. Royal Mail, one of the U.K.’s biggest employers with about 159,000 workers, has sought to adapt its letter-focused network to more lucrative shipping of packages in the face of competition from TNT Express NV (TNTE) of the Netherlands and Deutsche Post AG (DPW)’s DHL Express unit.

UBS AG (UBSN), Goldman Sachs Group Inc. (GS), Barclays and Bank of America Merrill Lynch are among banks mandated for the sale.

[knackeredneedadayoff]

Latest news Royal Fail sold and the union will strike like when,how long before Dave and his cronies get there butts in gear and get us out,this is the only way to stop privatisation as who would buy a company who has bad industrial relations.

[royalmailsajoke]

Private Equity firms would - it's what they specialise in. Then we're ****ed within three years.

[Brain Fury]

Private Equity firms would - it's what they specialise in. Then we're ****ed within three years.

Dead right. I don't think a strike can stop privatisation but it could make the result a lot worse a lot more quickly.

[Shambles]

Private Equity firms would - it's what they specialise in. Then we're ****ed within three years.

Dead right. I don't think a strike can stop privatisation but it could make the result a lot worse a lot more quickly.

I'm glad you emphasised COULD

And not Would.....big difference

[fishtank]

Private Equity firms would - it's what they specialise in. Then we're ****ed within three years.

Dead right. I don't think a strike can stop privatisation but it could make the result a lot worse a lot more quickly.

If a Private Equity company wants Royal Mail what would stop them hoovering up the shares after an IPO anyway?
Once we're out in the open market we're open to any predator.

[Brain Fury]

Private Equity firms would - it's what they specialise in. Then we're ****ed within three years.

Dead right. I don't think a strike can stop privatisation but it could make the result a lot worse a lot more quickly.

I'm glad you emphasised COULD

And not Would.....big difference

That's the point there is no certainty in any of the possible scenarios although from the vast majority of posts on this board you could be convinced that all the negatives of privatisation and none of the positives would be guaranteed outcomes and that therefore remaining in government ownership definitely would be the best result for RM employees. I just want to make the point that this isn't necessarily true and all potential outcomes should be considered. As you know, having considered what could happen I believe that privatisation by IPO is the best option or the least worst one anyway. But this is just my opinion and I've never pretended any different. I'm perfectly happy if people do the same and come to other conclusions.

[NWpostie]

History has shown what happened with previous privatisations, whats to say this is going to be any different, the public have seen through it and they don't like it.

[Shambles]

Private Equity firms would - it's what they specialise in. Then we're ****ed within three years.

Dead right. I don't think a strike can stop privatisation but it could make the result a lot worse a lot more quickly.

I'm glad you emphasised COULD

And not Would.....big difference

That's the point there is no certainty in any of the possible scenarios although from the vast majority of posts on this board you could be convinced that all the negatives of privatisation and none of the positives would be guaranteed outcomes and that therefore remaining in government ownership definitely would be the best result for RM employees. I just want to make the point that this isn't necessarily true and all potential outcomes should be considered. As you know, having considered what could happen I believe that privatisation by IPO is the best option or the least worst one anyway. But this is just my opinion and I've never pretended any different. I'm perfectly happy if people do the same and come to other conclusions.

I agree we are all entitled to an opinion, and I too am perfectly happy for you to share yours, we are after all both human, and not Clones, yet!

[Chelseablue]

Zero contract hours here we come ,,we all need to stick together ,strength and unity . C'mon ,,