UK government sells remaining stake in Royal Mail
The UK government has now sold off all its shareholding in Royal Mail – selling a 13% stake for £591m and passing on the remaining 1% stake to postal employees. The sale means that the Royal Mail is now fully in private hands for the first time in its 500-year history.
Royal Mail’s employees now own 12% of the company.
Commenting on the sale, UK 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.”
The Chancellor of the Exchequer, George Osborne, added: “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 one per cent stake to share between them.”
The UK’s Post Office, which operates the network of post office branches throughout the UK, remains wholly owned by government and was separated from Royal Mail in April 2012.
Some observers had reservations about the manner in which the government sold off its remaining stake.
Hannah Maundrell, Editor in Chief at www.money.co.uk, said to Post&Parcel today: “It’s a real shame the public don’t seem to be getting a chance to buy into this final slice of the Royal Mail pie; many would no doubt see this institution as a tempting proposition.
“For consumers, the impact should be minimal aside from the cash that gets returned to our collective coffers. Post Offices won’t close because they’re now run as an entirely separate business, and Royal Mail has agreed delivery standards that it should stick to, even once it’s no longer under the Government’s thumb.”
