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Govt set to announce £3bn Royal Mail float

The Government is close to announcing the flotation of Royal Mail in a move which would value the company at up to £3bn.

The Financial Times reports although no final decision has yet been made, a Government official told the newspaper “preparations were proceeding at pace”.

The flotation of Royal Mail could take place in mid-October but while the Government says it wants to sell a majority of the company, it has yet to confirm the percentage it will make available.

Business Secretary Vince Cable announced in July coalition plans to sell off a majority stake in Royal Mail Group by floating it on the London Stock Exchange in the current financial year.

The firm’s 150,000 staff have been guaranteed a 10 per cent stake in the business which will equate to around £2,000 each if Royal Mail is valued at £3bn.

The public will be able to buy shares in a retail offer, available through stockbrokers and direct from the Government via website.

The scheme will be marketed via newspaper and possibly online but not television.

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There are 2 comments at the moment, we would love to hear your opinion too.

  1. Great new – privatisation has always worked out really well to date!

    Will the new owners be taking on liability for the pension scheme?

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