Saturday 16 October 2021

 

< back | business | images | knowledge | library | rail unveiled | home

archive

::: RMT threatens national industrial action over service cuts



Railhub Archive
1996-05-20 DoT-001
Department of Transport

0

[[Transfer of Railtrack to the private sector]]


keywords: click to search


flotation
privatisation



Phrases in [single square brackets] are hyperlinks in the original document

Phrases in [[double square brackets]] are editorial additions or corrections

Phrases in [[[triple square brackets]]] indicate embedded images or graphics in the original document. (These are not usually archived unless they contain significant additional information.)


Department of Transport

[[Transfer of Railtrack to the private sector]]
_______________________________________________________________


date
20 May 1996
source Department of Transport
type Written answer

note Commons Hansard 20 May 1996: Cols. 36-7


Railtrack

Mr. Tim Smith: To ask the Secretary of State for Transport if he will make a statement on the outcome of the Government's sale of their shareholding in Railtrack group plc. [30483]

Sir George Young: I am pleased to report that the Government's UK public offer and international offers of Railtrack shares were successfully completed this morning when dealings in interim rights started on the London stock exchange.

As a result of bids received in the international offers, the price of the second instalment for all investors in the UK public order and the international offers were set at 190p per interim right.

Accordingly, the price for Railtrack interim rights purchased in the United Kingdom public offer was 380p per share, comprising 190p paid on successful application and 190p to be paid by 3 June 1997.

The price for interim rights purchased in the international offer of Railtrack shares was 390p per share, comprising 200p paid on successful application and 190p to be paid by 3 June 1997.

The Government offered for sale up to 434.8 million Railtrack shares in the UK public offer and the international offers.

Some 665,000 applications were received in the United Kingdom public offer for a total of some 391 million Railtrack shares. This represented some three times the shares initially expected to be sold in the UK public offer. In response to this demand, the Government increased the total number of shares allocated to the UK public offer to 210 million shares. At this level, the number of shares applied for in the UK public offer represented some 1.9 times the shares available.

Over 44 per cent. of applicants in the UK public offer received an allocation of shares. Over 97 per cent. of applicants had their applications met in full.

Some 180.4 million shares were allocated to bidders in the international offers. This number does not include any shares that SBC Warburg may have over-allotted in connection with the international offers. The extent of any such over-allotment will not be disclosed until later.

Individual investors bidding in the United Kingdom retail tender bid for some 136 million shares in Railtrack. Of these numbers, some 32.5 million shares were in respect of personal equity plan applications.

In addition to the shares sold in the UK public offer and the international offers, SBC Warburg, as global co-ordinators for the sale, hold an option to acquire from the Secretary of State for Transport up to a further 65.2 million Railtrack shares for the purposes of meeting any over-allotment made by them in connection with the international offer. This option must be exercised by 14 June.

Total gross proceeds from the UK public order and international offers are expected to amount to some £1.67 billion, of which some £849 million is expected to be received in this financial year.

Total gross proceeds may be further increased by a maximum of £254 million to the extent that, if at all, the global co-ordinator, SBC Warburg, exercises its option to acquire further shares.

The costs of the sale will be disclosed to Parliament in due course.

Following the offers, and assuming the exercise in full of the option over Railtrack shares granted by the Secretary of State for Transport to SBC Warburg Ltd., the Secretary of State for Transport expects to hold not more than 1 per cent. of Railtrack group plc's issued share capital. These amounts comprise principally shares that may be needed to meet share bonus entitlement under the UK public offer.

The demand for shares in Railtrack gives me great confidence in the future of the railways.


Railhub Archive ::: 1996-05-20 DoT-001





Saturday
16




Not logged on
Visitor










14 stories



5 collections





2 documents



2 documents