Royal Mail share sale raises £750m

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The UK government has raised £750 million by selling half its 30 per cent stake in Royal Mail at 500p a share.

Chancellor George Osborne announced the move last night, when he said a further 1 per cent tranche of shares in the company would be given to employees.

It means staff including postal workers across Britain will share in a chunk of the company worth around £50m, adding to the 10 per cent awarded to employees when the coalition began the flotation of the then state-owned firm in 2013.

Department for Business, Innovation & Skills said today that the government had taken advantage of “current favourable market conditions” to halve its stake in Royal Mail.

Business Secretary Sajid Javid added: “Royal Mail has demonstrated that it can thrive in the private sector. It now has the ability to access the funds it needs to ensure that it has a sustainable future and can adapt to the changes in the postal market.”