Royal Mail: Government to sell off remaining 14% stake

Royal Mail will still work with the Post Office (PA)

The Government has said it has already started the process of selling off the final 14 per cent stake that the taxpayer owns in Royal Mail.

The remaining 14 per cent will be sold to instutional investors such as pension funds. Previous share sales have been to private investors and employees.

A spokesperson for the Department for Business said that the sale should "bring value to the taxpayer" and that the Government sees no reason to hold a stake.

“The universal postal 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 stake in Royal Mail," the spokesperson said.

Royal Mail will still work with the Post Office, which is wholly owned by the Government. The two institutions are linked by at ten year contract signed in 2012 that says that Royal Mail will deliver through Post Office services.

Royal Mail: the story so far

June 4, 2015: the Chancellor announced that the Government will sell its remaining shares in Royal Mail.

June 8, 2015: the Government published a parliamentary report explaining the sale of the Government’s remaining stake in Royal Mail.

June 11, 2015: the Government sold about 50 per cent of its then existing stake, amounting to approximately 15 per cent of the company, at 500p per share raising £750 million.

July 8, 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 2015-16, subject to achieving value for money”.

July 21, 2015, the Government published a parliamentary report explaining the gift of shares to eligible UK employees.

September 17, 2015: 1 per cent of the Government’s shareholding was transferred to a Royal Mail Share Incentive Plan as gift to eligible UK employees to reward them for hard work in turning round the company. The shares were allocated to employees on 5 October.