Plans for Royal Mail share sale launched by British government

Britain's government yesterday officially launched plans to privatise more than half of Royal Mail, saying an initial sale of shares in the state-run postal service would occur within weeks.

"Her Majesty's Government today announces its intention to proceed with an initial public offering of Royal Mail," said a joint statement.

The IPO is "expected to take place in the coming weeks".

Royal Mail will list on the London Stock Exchange, while the coalition government said it would "retain flexibility around the size of the stake to be sold".

The government announced plans to privatise more than 50 per cent of Royal Mail in July following a major restructuring of the organisation in recent years, triggered by fierce competition from e-mail. Royal Mail was expected to be Britain's biggest privatisation since the 1980 sell-offs of former nationalised giants British Gas and British Telecom.

Media reports say the part sale of Royal Mail could be worth up to £3 billion (HK$36.7 billion).

The government previously said that it would take on Royal Mail's historic pension deficit. "This is an important day for the Royal Mail, its employees and its customers," Business Secretary Vince Cable said yesterday.