British Chancellor of the Exchequer George Osborne has announced that the UK government will be selling the 30% stake in Royal Mail that it retained after privatisation in 2013.
The government previously sold 60% of the 500 year old postal service and 10% was dispersed to staff. It’s expected that this sale will raise £1.5bn. After the privatisation there was criticism that the shares were sold off too cheaply. The 330p offer price was quickly exceeded when the shares were traded with the price currently just above £5.
Osborne said: “It is the right thing to do for the Royal Mail, the businesses and families who depend on it and crucially for the taxpayer.”
The sale will take place later this year and there is no indication on how the sale will be made.