British Aerospace (Hansard, 16 February 1981)

§ Mr. Tebbit

Up to 100,000,000 ordinary shares of 50p each in British Aerospace Public Limited Company were offered for sale at 150p per share. Over 155,000 applications have been received from the public for a total of approximately 350 million shares.

In addition, under the special arrangements for eligible employees, applications have been received from approximately 58,000 employees (approximately 90 per cent. of those eligible) for the 33 free shares offered to each employee. Under these special arrangements, applications have also been received from about 27,000 employees for a total of approximately four million shares in respect of the 2,178,990 shares available at the offer price.

All such applications for up to 70 shares will be allocated in full. Applications for more than 70 shares will be allocated 70 shares with the balance being scaled down pro rata, so that no employee will receive more than 220 shares. A corresponding 2,178,990 shares will be appropriated to these employees on a similar basis, free of cost and at the Government's expense.

48W

Preferential applications on pink application forms have been received from employees in respect of approximately 660,000 shares and will be allocated in full. Applications from the public will be allocated on the following basis:

Applications and Allocations

Up to 700 shares—In full

800 shares and up to 1,000 shares—750 shares

1,500 shares and up to 7,000 shares—Approximately 37½ per cent. of the amount applied for, with a minimum of 800 shares

7,500 shares and above—Approximately 18¾ percent. of the amount applied for, with a minimum of 2,750 snares

Letters of acceptance representing foreign-held shares will amount to approximately five million shares (2½ per cent. of the issued ordinary shares of the company).

Following the offer for sale, the Government will hold approximately 48.4 per cent. of the issued ordinary shares of the company.

In view of the large number of applications received, it is now expected that letters of acceptance will be posted by Thursday 19 February 1981 with dealings commencing on Friday 20 February 1981.

I have arranged for copies of the memorandum and articles of association of British Aerospace PLC to be placed in the Library.