Quotes: MENA   Enter Symbol: NewsLetter: Search: advanced

Britain to part-privatise Royal Mail in stock market float  Join our daily free Newsletter

MENAFN - AFP - 10/07/2013
No. of Ratings : 0
Add to Mixx!



(MENAFN - AFP) Britain on Wednesday announced plans to privatise more than half of Royal Mail, the state-run postal delivery service, following a major restructuring in recent years triggered by fierce competition from email.

Business Secretary Vince Cable confirmed to parliament that the coalition government planned to "dispose of a majority stake" via a flotation on the London Stock Exchange, with 10 percent of Royal Mail shares handed out to its employees for free.

Royal Mail was expected to be the biggest privatisation since the unprecedented sell-offs in the 1980s such as British Gas and British Telecom.

Cable, a member of the Liberal Democrats which share power with Prime Minister David Cameron's Conservatives, said the government would seek an initial public offering (IPO) by the end of the current financial year that ends next March.

"This is logical, it is a commercial decision designed to put Royal Mail's future onto a long term sustainable basis," Cable told parliament.

"It is consistent with developments elsewhere in Europe where privatised operators in Austria, Germany and Belgium produce profit margins far higher than the Royal Mail but have continued to provide high quality and expanding services."

He argued that partial privatisation would allow Royal Mail the freedom to raise capital, continue modernising and meet booming demand for online shopping delivery.

Cable added it would also help "secure the universal postal service -- the six-day-week service, at uniform and affordable prices to all 29 million addresses in the UK, which is vital to the UK economy".

Around 150,000 staff would be eligible to get a free stake in the business under Britain's largest employee share scheme of any major UK privatisation for almost 30 years, he said.

However, the Communication Workers Union (CWU) responded that it would explore strike action unless a deal on employee terms anconditions could be agreed with the eventual new owners.

"I really do not understand what the government are trying to achieve by this," said CWU deputy leader Dave Ward.

"If you think about the profits the Royal Mail are now making, there's no need for it to be privatised. What privatisation will do is destroy the UK's universal postal service.

"There's no way private companies can maintain six-day-a-week deliveries to every single address in the UK."

Reports suggest that the government plans to keep a 49-percent holding, while Cable stressed that the government would "retain flexibility" around the size of stake to be sold.

Royal Mail has recently enjoyed a surge in annual profits thanks to the increasing popularity of online shopping which generates parcel traffic, and owing also to deep cost-cutting and big increases in stamp prices.

Media reports say the part sale of Royal Mail could worth up to 3.0 billion (4.5 billion, 3.5 billion euros). The government previously said that it would take on Royal Mail's historic pension deficit.

The coalition government relaunched plans to part-privatise Royal Mail three years ago and after the proposal was ditched by the former Labour administration.

Former prime minister Gordon Brown's Labour government scrapped the sell-off plans in 2009 as Britain struggled with recession following the global financial crisis.

But Royal Mail recently announced that its profit after tax soared to 566 million in 2012-13 compared with a net gain of 149 million during its previous financial year. Revenue grew almost 6.0 percent to 9.279 billion.

Royal Mail continues to operate most British postal services even though its more than 350-year-long monopoly of the letter-delivery business ended in 2006 as new rules kicked in to allow rival operators.

While Brown's Labour government was seeking to offload a big chunk of the Royal Mail, it was also forced to nationalise or rescue several major British banks at the top of the global financial crisis in 2008.


 


AFP




  MENA News Headlines
 May 5 2016 - Four wounded after rockets hit Turkey's KilisThe Journal Of Turkish Weekly
(MENAFN - The Journal Of Turkish Weekly) >Four people including a police officer were wounded after rockets fired from Islamic State of Iraq and the Levant (ISIL)-controlled territory hit the ...

 May 5 2016 - Turkey- Delegation from Turkish opposition party detained in IsraelThe Journal Of Turkish Weekly
(MENAFN - The Journal Of Turkish Weekly) >A delegation from Turkey’s far-right Great Unity Party (BBP) was detained at Israel’s Tel Aviv airport early on May 5 the party and CNN Türk ...

 May 5 2016 - ISIL must be pushed back in northern Syria: Turkish ministerThe Journal Of Turkish Weekly
(MENAFN - The Journal Of Turkish Weekly) The Islamic State of Iraq and the Levant (ISIL) must immediately be pushed back from the Turkish border said Turkish Foreign Minister Mevlüt ...

 May 5 2016 - Jordan- Deputizing for King Royal Court chief receives US delegationJordan News Agency
(MENAFN - Jordan News Agency) Amman May 5 (Petra)--Deputizing for His Majesty King Abdullah II Royal Court Chief Fayez Tarawneh on Thursday received a delegation of US congressional aides currently ...

 May 5 2016 - Jordan- Deputizing for King Prince Faisal attends Israa wal Miraj celebrationJordan News Agency
(MENAFN - Jordan News Agency) Amman May 5 (Petra)--Deputizing for His Majesty King Abdullah II His Royal Highness Prince Faisal Bin Al Hussein on Thursday attended a grant religious ceremony held by ...

 May 5 2016 - Jordan, Palestine sign cultural cooperation programJordan News Agency
(MENAFN - Jordan News Agency) Ramallah April 5 (Petra)--Palestinian Prime Minister Rami Al Hamdallah on Thursday discussed with Culture Minister Lana Mamkigh means to boost cooperation and ...

 May 5 2016 - Jordan- PM meets investors in energy sectorJordan News Agency
(MENAFN - Jordan News Agency) Amman May 5 (Petra)--Prime Minister Abdullah Ensour on Thursday received businessman Tariq Al Abdullah and a delegation representing a group of international companies ...

 May 5 2016 - Qatar- Filipinos to celebrate Independence DayThe Peninsula
(MENAFN - The Peninsula) Philippine Ambassador Wilfredo C Santos (fourth left) cutting a cake along with UFOQ Chairman Edgar Anami (third left) Miss Tourism International Philippines 2015 Janela Joy ...

 May 5 2016 - Qatar- A hot day with maximum temperature around 38 degree celsiusThe Peninsula
(MENAFN - The Peninsula) Doha: The weather forecast for Qatar valid until 6pm Thursday inshore will be hot during with slight dust offshore will be hazy to misty with some clouds. Wind speed ...

 May 5 2016 - 2016 a bright year for Egypt's gymnastsDaily News Egypt
(MENAFN - Daily News Egypt) Egyptian female gymnasts have recently been making leaps and bounds in the competitive arena.This year, Sherine El-Zeiny won gold at the African Gymnastics Championships ...

 May 5 2016 - Egyptian clubs GSC, HSC take silver and bronze at Arab Water Polo Clubs ChampionshipDaily News Egypt
(MENAFN - Daily News Egypt) Saudi Arabian water polo club, Al-Qadisiyah, won the 13th edition of the Arab Water Polo Clubs Championship which was held at the Heliopolis Sporting Club (HSC) in ...

 May 5 2016 - Egyptian champions dominate squash tournamentsDaily News Egypt
(MENAFN - Daily News Egypt) Egyptian Mohamed Al-Shorbagy won the 2016 El-Gouna International Squash Open.In the final match, Al-Shorbagy defeated France's Gregory Gaultier in what was an unexpected ...

 May 5 2016 - Interview: Egyptian swimmer Farida OsmanDaily News Egypt
(MENAFN - Daily News Egypt) Nicknamed the Golden Fish, Farida Osman has won countless medals and has performed spectacularly in competitions. Among the many Egyptian athletes who have qualified for ...

 May 5 2016 - Mohammed bin Rashid greets UAE Armed Forces founders visionEmirates News Agency (WAM)
(MENAFN - Emirates News Agency (WAM)) ABU DHABI 5th May 2016 (WAM) -- Vice President and Prime Minister and Ruler of Dubai His Highness Sheikh Mohammed bin Rashid Al Maktoum has extended ...

 May 5 2016 - UAE- Mohamed bin Zayed: Our armed forces will steadily progress to be an extraordinary force able to face all threatsEmirates News Agency (WAM)
(MENAFN - Emirates News Agency (WAM)) ABU DHABI 5th May 2016 (WAM) -- His Highness Sheikh Mohamed bin Zayed Al Nahyan Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed ...

 May 5 2016 - Egypt's foreign exchange reserves gain $450m in April: CBEDaily News Egypt
(MENAFN - Daily News Egypt) The Central Bank of Egypt (CBE) revealed Wednesday that Egypt's net international reserves increased by approximately $450m in April 2016.It explained in a statement on ...

 May 5 2016 - Tahya Misr launches first education investment fund with EGP 100mDaily News Egypt
(MENAFN - Daily News Egypt) Tahya Misr Fund launched the first fund for profitable investment in education at an estimated cost of EGP 100m in the first phase, according to executive director of the ...

 May 5 2016 - King Salman's bridge creates expectations of increased Gulf investments in tourism sectorDaily News Egypt
(MENAFN - Daily News Egypt) Workers in the tourism sector expect an increase in tourist investments, especially in the Gulf of Aqaba across several touristic towns and cities such as Sharm El-Sheikh, ...

 May 5 2016 - Egypt's technical education is still woundedDaily News Egypt
(MENAFN - Daily News Egypt) Bassera, the Egyptian centre for research and public opinion, estimated that the private sector contributed to developing the Egyptian education system with 9% in funding ...

 May 5 2016 - Kuwait- His Highness PM arrives in HanoiKuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA)) HANOI May 5 (KUNA) -- His Highness the Prime Minister Sheikh Jaber Al-Mubarak Al-Hamad Al-Sabah and his accompanying delegation arrived in Hanoi on Thursday on an ...

more...


 






Google

 
 

Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  
 

Middle East North Africa - Financial Network
Arabic MENAFN

Main News
News By Industry
News By Country

Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

Commodoties

Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks
 

Algeria 
Bahrain 
Egypt 
Iraq
Jordan 
Kuwait 
Lebanon
Morocco 
Oman 
Palestine
Qatar 
Saudi Arabia 
Syria
Tunisia 
UAE 
Yemen

Weather
Economic Calendar
Financial Glossary


Financial Calculators

RSS Feeds [XML]

Corporate Monitor

Events

Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters


 
© 2014 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help