Singapore Fund Swoops For Royal Mail Stake

[TrueBlueTerrier]

http://news.sky.com/story/1148013/singa ... mail-stake" onclick="window.open(this.href);return false;

A state-backed fund from Singapore is among those placing orders for Royal Mail shares, Sky News understands.

A Singaporean state-backed fund is poised to become a significant shareholder in Royal Mail amid strong overseas demand for the postal operator's shares.

Sky News has learnt that the Government Investment Corporation (GIC) of Singapore has placed an order as part of the £3bn privatisation of Royal Mail, further details of which were announced last week.

GIC is one of several sovereign wealth funds which have expressed an interest in buying shares in the initial public offering, according to people close to the deal.

Their appetite for the stock effectively means Royal Mail will swap the ownership of some of its shares by one government for others.

Royal Mail is expected to be valued at between £2.6bn and £3.3bn as ministers race to privatise the company ahead of potential strike action by staff.

The company's flotation will include an eventual distribution of 10% of Royal Mail shares to 150,000 of its employees and an offer of shares to retail investors.

At an overall company valuation of £3bn, the employee shares would be worth in the region of £2,000 per person.

Royal Mail's profit more than doubled to just over £400m in the year to March as the modernisation plan of Moya Greene, chief executive, gathered pace.

GIC, like other sovereign funds, is a familiar investor in UK companies, with Royal Mail's promise of a robust dividend policy attracting strong interest.

Dealing in Royal Mail shares is likely to begin on October 16.

[Chelseablue]

Makes me sick ,,

[UnhappyGremlin]

Makes me sick ,,

Me too.
And they won't be the only ones, either..