HC Deb 05 December 1979 vol 975 cc230-1W
Mr. Alfred Morris

asked the Secretary of State for Industry what was the original cost to public funds of the National Enterprise Board's holding in Ferranti Ltd.; on what date it was acquired; and what is the current value of the holding.

Mr. Michael Marshall

On 10 September 1975 the Department of Industry acquired 4 million ordinary 50p shares and 2⅔ million restricted voting ordinary 50p shares at a total cost of £8⅔ million. These shares were transferred to the NEB on 25 February 1976.

On 27 September 1978 the company made a one-for-one capitalisation issue to the holders of all ordinary shares and restricted voting ordinary shares. On 28 September 1978 the restricted voting shares were enfranchised and the NEB offered for sale 2⅔ million ordinary shares. The NEB's current holding is therefore 10⅔ million ordinary shares, valued at about £41 million on the basis of the Stock Exchange price on 3 December 1979.

Mr. Alfred Morris

asked the Secretary of State for Industry what considerations will determine any decision to dispose of the National Enterprise Board's holding in Ferranti Ltd.; and if he will make a statement.

Mr. Michael Marshall

In disposing of its shareholdings the Board will seek to secure the highest available consideration, subject to the interests of the taxpayer and of the company, and to such other factors as my right hon. Friend may draw to the Board's attention.