Royal Mail is set to float on the stock market as the coalition government makes one of the UK’s oldest and largest state controlled properties a private enterprise. Share may be on sale by Autumn 2013 if the plans go ahead.
Royal Mail Value
It is estimated that the Royal Mail will be valued at around £2 billion to £3 billion, with around 10% of the shares (approximately £200,000,000 worth of stock) will be distributed to the Royal Mail’s 150,000 workers.
Each worker is expected to receive, on average, £1300 with of new shares in the company.
The Communication Workers Union (CWU) are standing against the privatisation – some feel that a £1300 windfall will not be good compensation for the potential loss in workers rights in the future.
Who Will Own Royal Mail?
10% of the the business will be owned by Royal Mail workers (unless they sell their stock after floatation). It is expected that some of Royal Mail’s competitors will buy as much stock as they can. These include TNT and DHL. By doing so they may be in a position in the future to bid for a takeover attempt.
Internet Shopping Revival
The Royal Mail is focussing more of its business on parcel delivery now as Internet shopping continues to develop in the UK. Parcel delivery provides larger profit margins that letters.
Until flotation on the stock market is finally confirmed we will not know how much the shares will cost.
What Will Happen to Postman Pat?
With the Royal Mail a private company, will Postman Pat be able to continue his role as a children’s entertainer?