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@ Shareholder
Executive
HM Government Commercial — In Confidence
Minutes of Shareholder Executive Board
Wednesday 13 March 2013 at 14.30
Members Patrick O'Sullivan (Chair) (PO’S) Attendees: Patrick Magee (PM) (item 4)
present: Claudia Arney (CA)
1.
Gerry Grimstone (GG)
Jeremy Pocklington (JP) Secretary: Peter Batten
Tony Watson (TW)
Mark Russell (MR)
Roger Lowe (RL) Apologies: Lord Carter
Anthony Odgers (AO) Ken McCallum (KMC)
Apologies for absence, Chair’s welcome and introduction, minutes from last
meeting, declarations of interest
1.3:
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1.4:
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2. Chief Executive’s Report
2.3:
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2.5.
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— PM joined the meeting —
3. Royal Mail
3.1.
3.2.
3.3.
3.4.
RL presented the Royal Mail, noting that industrial relations remained a key
risk to the transaction process. RL explained that ShEx is publicly aiming for a
transaction by March 2014, but is privately working towards an October /
November 2013 window.
The Board discussed the timescales, querying whether an autumn transaction
was possible, and what the impact of going early would be on the value of the
company. RL explained that preparations were geared towards an October
transaction, and noted that the company has outperformed budget forecasts
meaning that value can be more quickly captured than previously anticipated.
RL explained that owing to Parliamentary obligations, ShEx would have to
prepare a report for June in advance of the Summer Recess.
GG expressed his view that ShEx must continually engage with institutional
investors to ensure the quantum of employee shares granted to workers does
not harm investor appetite. GG felt that this would be an important piece of
evidence that Ministers should consider in deciding how to approach employee
shares.
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3.5. GG was also keen to discuss the planned timescales, noting that a November
window provided an additional four weeks to engage institutional investors.
RL explained that October was preferable as it afforded sufficient elasticity for
unforeseen events, noting that December was off limits due to the Christmas
mail rush.
3.6. TW was keen to understand the target price that ShEx would be seeking to
achieve, noting that there was a need to balance price with speed. RL
explained that the target price was between £1bn and £3bn, but that the
transaction window was likely to close in March 2014 and achieving a sale this
Parliament was the paramount priority.
Business Bank
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45.
46.)
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6.1)
7A)
8. Actions
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Outstanding actions
Action
ref.
Action point
Action
officer
Due
date
Status
13/07
13/08
13/09
13/10
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