Power sale given discount lure

Private investors in the £4bn sale of shares in National Power and PowerGen will receive a discount of up to £200 on the price paid by institutions if they register and apply through an approved share shop.

This incentive discount will be on the second and third payment installments to encourage long-term share ownership. It will be in addition to an initial discount, yet to be announced, for all investors in the UK public offer.

The extra incentive for those who buy through share shops takes the form of 25p per share on the first 800 shares allocated - roughly 5 per cent on the current share prices of either National Power and PowerGen. The discount will be divided to give 10p and 15p off the second and final installments respectively.

The Government has already said that each of three installments will fall in a different tax year. The final price of the shares will be decided through a bidding process among institutions with the sale due for completion at the beginning of March.

Private investors can choose to take bonus shares in preference to the discount, receiving one share for every 15 on the first 1,200 allocated and held until the end of March 1998. The total package is similar to that offered in the final sale of BT shares in 1993.

Sir George Young, Financial Secretary, said: "The incentives package announced today reflects the Government's ongoing commitment to wider and deeper share ownership, and I am confident it will prove attractive to retail investors considering buying shares in the offer."

Investors in the UK public offer will apply for a package of shares in National Power and PowerGen in ratio of three National Power to two PowerGen, although the partly paid shares will trade separately. The discounts announced yesterday will apply to the first 480 National Power shares and the first 320 PowerGen shares.

Those opting for the bonus share alternative will receive a maximum of 48 shares in National Power and 32 in PowerGen.

The Government, which is selling its remaining 40 per cent stake in each, of the two generators has already agreed that National Power and PowerGen can buy back up to 8 per cent of their total shares through the offer, sharply reducing the amount available to institutions worldwide.

Instalment discounts Total number Amount of Amount of Total of shares held discount off discount off discount continuously 2nd instalment final inst

100 £10 £15 £25 200 £20 £30 £50 300 £30 £45 £75 400 £40 £60 £100 500 £50 £75 £125 600 £60 £90 £150 700 £70 £105 £175 800 £80 £120 £200

Start your day with The Independent, sign up for daily news emails
PROMOTED VIDEO
News
ebooksNow available in paperback
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Ashdown Group: Marketing Services Manager - (communications, testing, DM)

£32000 - £35000 per annum + benefits: Ashdown Group: Marketing Services Manage...

Guru Careers: Finance Account Manager

£Neg. (DOE) + Excellent Benefits: Guru Careers: A Finance Account Manager with...

Ashdown Group: Java Developer - Hertfordshire - £47,000 + bonus + benefits

£40000 - £470000 per annum + bonus: Ashdown Group: Java Developer / J2EE Devel...

Ashdown Group: Direct Marketing Manager - B2C, Financial Services - Slough

£45000 - £55000 per annum + Benefits: Ashdown Group: An exciting opportunity h...

Day In a Page

Jeb Bush vs Hillary Clinton: The power dynamics of the two first families

Jeb Bush vs Hillary Clinton

Karen Tumulty explores the power dynamics of the two first families
Stockholm is rivalling Silicon Valley with a hotbed of technology start-ups

Stockholm is rivalling Silicon Valley

The Swedish capital is home to two of the most popular video games in the world, as well as thousands of technology start-ups worth hundreds of millions of pounds – and it's all happened since 2009
Did Japanese workers really get their symbols mixed up and display Santa on a crucifix?

Crucified Santa: Urban myth refuses to die

The story goes that Japanese store workers created a life-size effigy of a smiling "Father Kurisumasu" attached to a facsimile of Our Lord's final instrument of torture
Jennifer Saunders and Kate Moss join David Walliams on set for TV adaptation of The Boy in the Dress

The Boy in the Dress: On set with the stars

Walliams' story about a boy who goes to school in a dress will be shown this Christmas
La Famille Bélier is being touted as this year's Amelie - so why are many in the deaf community outraged by it?

Deaf community outraged by La Famille Bélier

The new film tells the story of a deaf-mute farming family and is being touted as this year's Amelie
10 best high-end laptops

10 best high-end laptops

From lightweight and zippy devices to gaming beasts, we test the latest in top-spec portable computers
Michael Carberry: ‘After such a tough time, I’m not sure I will stay in the game’

Michael Carberry: ‘After such a tough time, I’m not sure I will stay in the game’

The batsman has grown disillusioned after England’s Ashes debacle and allegations linking him to the Pietersen affair
Susie Wolff: A driving force in battle for equality behind the wheel

Susie Wolff: A driving force in battle for equality behind the wheel

The Williams driver has had plenty of doubters, but hopes she will be judged by her ability in the cockpit
Adam Gemili interview: 'No abs Adam' plans to muscle in on Usain Bolt's turf

'No abs Adam' plans to muscle in on Usain Bolt's turf

After a year touched by tragedy, Adam Gemili wants to become the sixth Briton to run a sub-10sec 100m
Calls for a military mental health 'quality mark'

Homeless Veterans campaign

Expert calls for military mental health 'quality mark'
Racton Man: Analysis shows famous skeleton was a 6ft Bronze Age superman

Meet Racton Man

Analysis shows famous skeleton was a 6ft Bronze Age superman
Garden Bridge: St Paul’s adds to £175m project’s troubled waters

Garden Bridge

St Paul’s adds to £175m project’s troubled waters
Stuff your own Christmas mouse ornament: An evening class in taxidermy with a festive feel

Stuff your own Christmas mouse ornament

An evening class in taxidermy with a festive feel
Joint Enterprise: The legal doctrine which critics say has caused hundreds of miscarriages of justice

Joint Enterprise

The legal doctrine which critics say has caused hundreds of miscarriages of justice
Freud and Eros: Love, Lust and Longing at the Freud Museum: Objects of Desire

Freud and Eros

Love, Lust and Longing at the Freud Museum