Privatised Public Corporations (Hansard, 9 January 1985)

§ Mr. Blair
asked the Chancellor of the Exchequer if he will publish a table showing for each of the public corporations privatised in the period 1979 to 1984 (i) the gross proceeds from flotation or sale, (ii) the prior claims on such proceeds to meet contingent liabilities such as underfunded pension schemes, (iii) commissions, fees, advertising expenses etc. paid to merchant bankers and other advisers and (iv) the net proceeds accruing to the Consolidated Fund.

§ Mr. Moore
[pursuant to his reply, 21 December 1984, c. 357]: The following table gives the information requested in parts (i) and (iv) of the hon. Member's question. Only in the case of the National Freight Company was a payment in respect of a deficiency in pension funds netted off from gross sale receipts; the sum involved was 48.7 million. The total cost of fees and commissions paid to primary underwriters, sub-underwriters, financial advisers, legal advisers, auditors and stockbrokers for each privatisation was given in my earlier reply to the hon. Member on 21 December.

£ million

Company Gross proceeds Net proceeds

British Aerospace 149 ^*4.3

Cable and Wireless (1981) 225 †182

Amersham International 66 64

Britoil 639 627

National Freight Company 53.5 ‡4.6

Associated British Ports (1983) 48 46

Enterprise Oil 392 ¶381

British Telecom ║3,916 not available

^* In addition to sale expenses, a capital injection of £100 million was netted off sale proceeds.

† In addition to sale expenses, the Government subscribed £35 million for new shares issued at the time of sale.

† In addition to sale proceeds, a payment in respect of pension funds deficiency of £48.7 million was netted off sale proceeds.

║ Latest estimate.

¶ Gross proceeds, payable in three tranches. Net proceeds not yet determined.

The sales of Jaguar and Sealink were conducted by BL and British Rail respectively, which retained the sale proceeds.

§ Mr. Blair
asked the Chancellor of the Exchequer if he will publish an update of the table on shareholdings in privatised public corporations given in reply to the hon. Member for Carrick, Cumnock and Doon Valley (Mr. Foulkes) on 29 July, Official Report, columns 725–8.

§ Mr. Moore
[pursuant to his reply, 21 December 1984, c. 357.]: The following table gives the information requested. The sale of Jaguar was conducted by BL and the information requested is a matter for the company, not the Government. However I understand that the figures are as given in the table.
491W

British Aerospace Cable and Wireless Amersham International Britoil Associated British Ports Enterprise Oil ¶Jaguar British Telecom

(c) Proportion of total issued share capital initially reserved for employees (per cent.) 5.8 5 5 6 5.6 0.3 ≑5 up to 5

(d) Number of shares applied for by employees 10,612,008 3,785,833 2,014,140 580,610 1,856,875 61,250 2,300,000 128,500,000

(e) Number of shares allocated to employees 7,072,300 3,785,833 1,828,290 580,610 1,736,965 61,250 2,300,000 114,800,000

(f) Proportion of total work force becoming shareholders (per cent.) 74 99 ‡99 72 91 71 ≑19 93

(g) Proportion of total issued share capital initially held by employees (per cent.) 3.6 1.4 3.7 0.1 4.3 0.03 ≑1.3 1.9

^* A subsequent rights issue (March 1983) not taken up by Government, increased the proportion of Cable and Wireless shares held in the private sector to 55 per cent.

† These figures include shares allocated free to employees, except for Enterprise Oil and Jaguar where no shares were so allocated.

‡ Excludes overseas employees.

║ A further 2.5 per cent, of total issued share capital was reserved for BL employees; 2.4 per cent, of whom became shareholders holding a further 0.9 per cent, of the share capital.

¶ The figures for the number of shares allocated to employees do not include shares held in trust for employees under Jaguar's employee share incentive scheme.

£ million
Company	Gross proceeds	Net proceeds
British Aerospace	149		^*4.3
Cable and Wireless (1981)		225		†182
Amersham International	66		64
Britoil	639		627
National Freight Company	53.5		‡4.6
Associated British Ports (1983)		48		46
Enterprise Oil	392		¶381
British Telecom	║3,916		not available
^* In addition to sale expenses, a capital injection of £100 million was netted off sale proceeds.
† In addition to sale expenses, the Government subscribed £35 million for new shares issued at the time of sale.
† In addition to sale proceeds, a payment in respect of pension funds deficiency of £48.7 million was netted off sale proceeds.
║ Latest estimate.
¶ Gross proceeds, payable in three tranches. Net proceeds not yet determined.

	British Aerospace	Cable and Wireless	Amersham International	Britoil	Associated British Ports	Enterprise Oil	¶Jaguar	British Telecom
(c) Proportion of total issued share capital initially reserved for employees (per cent.)	5.8	5	5	6	5.6	0.3	≑5	up to 5
(d) Number of shares applied for by employees	10,612,008	3,785,833	2,014,140	580,610	1,856,875	61,250	2,300,000	128,500,000
(e) Number of shares allocated to employees	7,072,300	3,785,833	1,828,290	580,610	1,736,965	61,250	2,300,000	114,800,000
(f) Proportion of total work force becoming shareholders (per cent.)	74	99	‡99	72	91	71	≑19	93
(g) Proportion of total issued share capital initially held by employees (per cent.)	3.6	1.4	3.7	0.1	4.3	0.03	≑1.3	1.9
^* A subsequent rights issue (March 1983) not taken up by Government, increased the proportion of Cable and Wireless shares held in the private sector to 55 per cent.
† These figures include shares allocated free to employees, except for Enterprise Oil and Jaguar where no shares were so allocated.
‡ Excludes overseas employees.
║ A further 2.5 per cent, of total issued share capital was reserved for BL employees; 2.4 per cent, of whom became shareholders holding a further 0.9 per cent, of the share capital.
¶ The figures for the number of shares allocated to employees do not include shares held in trust for employees under Jaguar's employee share incentive scheme.