Govt decided against further Royal Mail sell-off

The Government looked at selling its remaining stake in the Royal Mail when shares were trading at their peak in March but decided against it because it feared antagonising City investors.

Sky News reports Business Secretary Vince Cable and his advisors considered the sale of the remaining 30 per cent stake following its listing five months prior.

The remaining stake would have netted the Government a further £500m gain.

The Government has previously been accused by MPs on the business, innovation and skills committee and the national audit office of selling off its stake too cheaply and costing taxpayers £1bn.

At the time the sale of taxpayers’ remaining 30 per cent shareholding was discussed in March, Royal Mail shares were trading at around 590p and a sale would have generated close to £1.8bn.

However a sale would have meant breaking a lock-up agreement put in place at the time of the company’s initial public offering last October, under which the Government pledged not to sell any further shares for at least 180 days.