The latest news and discussion on Royal Mail Shares.Please note the advise given in this forum is unofficial, please use the links we have for a more detailed response or see an independent financial adviser. All news and discussion on Daniel Kretinsky's full takeover of Royal Mail.
The government has sold a 13% stake in Royal Mail plc at a price of 455 pence per share. The remaining 1% shareholding will be gifted to Royal Mail’s eligible UK employees - taking the total stake in the business owned by employees to 12%.
The sale has raised £591.1 million. Proceeds raised from sales of all the government’s shares total £3.3 billion.
Business Secretary, Sajid Javid, said:
This is a truly historic day for Royal Mail with the workers gaining a share of this history.
We have delivered on our promise to sell the government’s entire remaining stake which means that for the very first time the company is now wholly owned by its employees and private investors. This is the right step for the Royal Mail, its customers and the taxpayer.
Proceeds will also go to help pay off the national debt – a crucial part of our long term plan to provide economic security for working people.
Chancellor of the Exchequer George Osborne said:
This is a milestone moment in the long and proud history of the Royal Mail, when we secure its long term future. By fully leaving state ownership we have a win all round - for customers, the workforce and the taxpayer. And every penny will be used to pay down our national debt as we continue to bring our public finances under control.
Once again, we are also going to recognise the hard work of the staff who have done a great job in turning the company around, and give them a 1% stake to share between them.
There is no policy need for government to hold shares in Royal Mail, as the universal postal service remains well protected by law and by Ofcom.
Post Office Ltd, which operates the network of branches throughout the UK, remains wholly-owned by government and was separated from Royal Mail in April 2012.
The relationship between the Post Office and Royal Mail is a commercial one and a 10 year contract for the delivery of Royal Mail services through post offices was put in place in 2012.
So it looks like we're in line for another 103 shares each, based on the recent allocation. Taking full-time employees' holding up to 935 shares each
Yeah the market definitely didn't like it, which is strange... I thought cutting all ties from government ownership and having full commercial freedom was what the market were crying out for as far as RMG were concerned
So does this mean we get even more free shares, we have had 10% first time and a further 1 % at the first second stage of the sell off, so now we will be getting another 1% if I have read it right.
It's not a case of the market 'not liking it'. The price fell because the news that shares had been offloaded at 455p came after the market had closed. Had they opened at 472p again the next morning, the new buyers would have got an instant 3.73% profit.
To use an analogy, if your neighbour and yourself had identical houses up for sale, and his sold at a price lower than you were hoping for, it would only be sensible to drop your asking price the next day ...
" We have delivered on our promise to sell the government’s entire remaining stake which means that for the very first time the company is now wholly owned by its employees and private investors. This is the right step for the Royal Mail, its customers and the taxpayer." Really ?????
fb1969 wrote:I have a letter from Equiniti dated 31 Oct 15 that gave me the shares from this issue. Can't remember the exact figure, but it was just over 100.
That was from last years extra shares we are due some more, 1% of the governments final holding I think
fb1969 wrote:I have a letter from Equiniti dated 31 Oct 15 that gave me the shares from this issue. Can't remember the exact figure, but it was just over 100.
No there was the final sale of the last 13% we were supposed to get 1% of them and this was after those shares you mention were issued to us.
