01/02/2024, 22:48
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Press release
Government completes
final sale of its stake in
Royal Mail at 455p per
share
The government has sold a 13% stake
in Royal Mail plc at a price of 455 pence
per share.
From: Department for Business, Innovation &
Skills (/government/organisations/department-for-
business-innovation-skills), The Rt Hon Sajid
Javid MP (/government/people/sajid-javid), and The
Rt Hon George Osborne
(/government/people/george-osborne)
Published 13 October 2015
The government has sold a 13% stake in Royal
Mail plc at a price of 455 pence per share. The
Government completes final sale of its stake in Royal Mail at 455p per share - GOV.UK
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01/02/2024, 22:48 Government completes final sale of its stake in Royal Mail at 455p per share - GOV.UK
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
(http:/Awww.ofcom.org.uk/).
Post Office Ltd, which operates the network of
branches throughout the UK, remains wholly-owned
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01/02/2024, 22:48 Government completes final sale of its stake in Royal Mail at 455p per share - GOV.UK
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.
Notes to editors:
1. On 4 June 2015 the Chancellor announced that
the government will sell its remaining shares in
Royal Mail
(https://www.gov.uk/government/news/chancellor-
announces-4-billion-of-measures-to-bring-down-debt).
2. On 8 June 2015 the government published a
parliamentary report explaining the sale of the
government's remaining stake in Royal Mail
(https://www.gov.uk/government/publications/royal-
mail-sale-of-shares-2015).
3. On 11 June 2015, the government sold 50% of its
existing stake at 500p per share raising £750
million.
4. On 8 July 2015, the Summer Budget document
stated “the government intends to complete the
sale of its remaining 14 per cent shareholding in
Royal Mail by the end of 2015 to 2016, subject to
achieving value for money”.
5. On 21 July 2015, the government published a
parliamentary report explaining the gift of shares
to eligible UK employees.
6. On 10 June 2015, it was announced that the
government would gift 1% of shares in Royal Mail
to eligible UK employees to reward them for hard
work in turning round the company. On 17
September 2015 these shares were transferred
to the Royal Mail Share Incentive Plan. The
shares were allocated to employees on 5
October 2015.
Published 13 October 2015
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