British Petroleum (Hansard, 31 October 1979)

§ Mr. Lawson

My right hon. and learned Friend the Chancellor of the 523W Exchequer announced in his Budget Statement that the Government intended to sell part of their shareholding in British Petroleum.—[Vol. 968, c. 249.] Arrangements have therefore been made for the sale of 80 million ordinary shares of 25p each in the company. The sale of 80 million shares represents 5.17 per cent. of BP shares and will reduce the total of the Government and Bank of England holdings, taken together, to some 46 per cent.

The invitation to underwrite the sale of these shares at £3.63 a share was issued this morning and this has been successfully completed. A press notice is being issued by the Bank of England giving more particulars of the sale and detailed terms of the offer will be advertised in the press on 4 and 5 November. Copies of the prospectus and application forms will be available from 5 November from the Bank of England and its branches, main United Kingdom branches of many banks, main branches of the trustee savings banks, main post offices, the banks underwriting the offer and from the brokers to the offer. Application lists will open at 10 am on 9 November and close some time later that day. Applications from employees of BP and its United Kingdom subsidiaries for shares not exceeding £500 in value at the offer price as well as applications from the trustees of the BP group employee participating share scheme will be allocated in full. My right hon. and learned Friend the Chancellor of the Exchequer made clear in his Budget Statement that the Government's sales of State-owned assets would, besides serving the immediate purpose of helping reduce the borrowing requirement, be an essential part of the Government's long-term programme for promoting the widest possible participation by the people in the ownership of British industry. So far as possible, this intention will be taken into account when making allocations in the event of over-subscription. In addition, the minimum size of application on this occasion will be 75 shares as compared with the equivalent of 100 shares in the 1977 sale.

The prospectus will record that the Government do not intend to sell any more of their present holding in the company, nor is there any intention to sell, other than to the Government, any 524W of the shares in the company representing the holding acquired by the Bank of England from the Burmah Oil Company Limited and one of its subsidiaries, for the foreseeable future. It will also record the Government's reaffirmation of their intention to maintain their relationship with BP in a way which does not breach the traditional practice of non-intervention in the administration of BP as a commercial concern.

A token Estimate will be presented to the House in due course to provide for the expenses of the sale, including any arising from indemnities given in connection with the sale. A minute will be laid before Parliament today regarding those indemnities.