Royal Mail’s privatisation is complete, after the Department for Business, Skills and Innovation (BIS) said it had sold its remaining 14% stake in the business.
The government said it planned to sell off its £1.5bn stake in Royal Mail in June of this year, completing the privatisation it kick started back in October 2013 with an IPO.
BIS has disposed of 13% of the issued share capital at 455p per share, for a total of £591.1m. furthermore arrangements are being made for the government's final 1% shareholding (totaling some 10 million shares) to be gifted to Royal Mail's eligible UK employees. This will mark the disposal of 100% of the Government's ownership of Royal Mail.
The government appointed Rothschild to act as capital market adviser when it laid out its plans earlier this year. BofA Merrill Lynch, Goldman Sachs International and J.P. Morgan Securities acted as joint bookrunners.
A spokesman for BIS said of the sale yesterday: "The Business Secretary has... authorised a sale process to begin. Current market conditions should allow a successful sale and the realisation of value for the taxpayer.
“The universal service is strongly protected by law and Ofcom has a duty to ensure its provision. Therefore the government sees no policy reason to retain a shareholding in Royal Mail."
The Post Office remains wholly operated by the government, having been separated from Royal Mail in April 2012.
