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Written question asked by Chuka Umunna (Labour) on Tuesday, 15 July 2014, in the House of Commons. It was due for an answer on Monday, 21 July 2014 (named day). A holding answer was provided on Monday, 21 July 2014. A substantive answer was provided by Matt Hancock (Conservative) on Wednesday, 15 October 2014 on behalf of the Department for Business, Innovation and Skills.

Royal Mail

Question

To ask the Secretary of State for Business, Innovation and Skills, what assurances were sought from priority investors ahead of the privatisation of Royal Mail on long-term holding of shares by (a) Ministers in his Department (b) Officials in his Department (c) the Financial Adviser to the Government and (d) the banking syndicate working on the privatisation.

Answer

No assurances were sought from the priority investors ahead of the sale of shares in Royal Mail.

Any mechanism which requires a buyer to give up the rights normally associated with shares, such as a restriction on the right to sell those shares for a period of time, would be reflected in the price investors would be prepared to pay for those shares.

These investors gave the Government confidence to take forward the IPO which raised nearly £2bn for the tax payer and reduced the risk that the tax payer to support the universal postal service.

Secondary information

Type
Written question
Reference
206026
Session
2014-15
Subjects
Privatisation Royal Mail
Link
View this Written question on www.parliament.uk