HC Deb 03 December 1985 vol 88 c175W
Mr. Ashdown

asked the Chancellor of the Exchequer if he will make a statement on the contribution of his plans for offering shares in Cable and Wireless to Her Majesty's Government's policy on seeking wider public share ownership.

Mr. Moore

48,796,399 ordinary shares (worth some £286 million at the offer price) are being made available by the Government for sale to members of the public and to employees and pensioners of Cable and Wireless. In the event of heavy demand, a further 5 million shares will be made available as well as any shares not taken up by existing shareholders.

Mr. Ashdown

asked the Chancellor of the Exchequer why the Government are not taking up their preferential entitlement of 12.8 million new shares in Cable and Wireless and offering this instead to Japan and Canada.

Mr. Moore

The Government are not taking up their preferential entitlement in accordance with their decision to sell their remaining ordinary shares in Cable and Wireless and their general policy of not retaining ordinary shareholdings in privatised companies. The decision to dispose of the new shares in Japan and Canada was a matter for the company.

Mr. Leigh

asked the Chancellor of the Exchequer if he will make a further statement about the Government's privatisation programme.

Mr. Moore

The Government are offering for sale its remaining 102,500,005 ordinary shares in Cable and Wireless in a joint offer with the company which is issuing 43,610,814 new ordinary shares. The offer will close on 11 December 1985. The company is also offering separately 12,812,500 new ordinary shares in Japan and Canada.

All the offered shares have been underwritten. The price has been fixed at £5.87 per share, with £3 payable on application and the balance of £2.87 payable on 7 March 1986. Gross proceeds to the Government will therefore be £602 million.

Depending on the level of demand, up to two thirds of the shares in the joint offer will be made available for the public, Cable and Wireless employees and pensioners, and existing shareholders.

A copy of the prospectus for the offer has been placed in the Library.