Government to keep 38% stake in RM at least six months

[POSTMAN]

The UK government has revealed that it has an agreement with Royal Mail not to sell its remaining 38% stake for at least six months.

The government sold off a 52% stake in the universal postal service provider on 11 October, and also distributed 10% of shares free to nearly 150,000 employees.

During questions in the House of Lords on Tuesday, minister Lord Popat said the government’s remaining shares are being held and will not be sold for a period of six months.

He said: “The sale of shares thereafter will depend on the market circumstances and how the Royal Mail is performing in terms of its business profit and in terms of the cash that the business generates.”

The comment came as the minister answered further questions about the valuation of Royal Mail prior to its IPO on the London Stock Exchange. Lord Popat was responding to concerns from opposition peers that the government was planning to sell more of its Royal Mail shares “at a knockdown price".


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[UnhappyGremlin]

Until the industrial unrest is over.
And the share prices have stabilised.
At the higher end.
Or am I cynical?

Also possible a 'pre-deal' has been agreed with one or a small number of investors already.

[taxi4leighton]

i wonder if they will favour small investors to apply for them,or if they will sell them to a few select hedge funds

[UnhappyGremlin]

i wonder if they will favour small investors to apply for them,or if they will sell them to a few select hedge funds

Think the last week and a half has kind of made this irrelevant.
Two hedge funds now have basically 10% between them.

Though, it wouldn't surprise me.

[wandle]

i wonder if they will favour small investors to apply for them,or if they will sell them to a few select hedge funds

It is somewhat irrelevant if the 38% is made available to the public, or not. If they are priced as foolishly low as in the recent offering, the people who buy them will sell them at the first opportunity, for a quick profit! That is undoubtedly how TIC acquired so many shares in such a short time. If there weren't any sellers, they could not have got their hands on any shares!

[fishtank]

It is somewhat irrelevant if the 38% is made available to the public, or not. If they are priced as foolishly low as in the recent offering, the people who buy them will sell them at the first opportunity, for a quick profit!

I would have thought that the 38% will have to be sold at whatever the current market price sustains so it's more likely I would have thought that they would be fed piecemeal into the system rather than dump 38% straight onto the market and risk depressing the share price.

[vmaxv4]

Who know's..
We might get a sniff at more shares to placate us all with the "Great rock 'n' roll Colleague Share swindle...

[wandle]

It is somewhat irrelevant if the 38% is made available to the public, or not. If they are priced as foolishly low as in the recent offering, the people who buy them will sell them at the first opportunity, for a quick profit!

I would have thought that the 38% will have to be sold at whatever the current market price sustains so it's more likely I would have thought that they would be fed piecemeal into the system rather than dump 38% straight onto the market and risk depressing the share price.

Or, they could sell the entire 38% in a second offering, at say, a 10% discount on the prevailing market price... with priority given to those who purchased in the first offer ?