§ Mr. Robert Atkinsasked the Secretary of State for Trade and Industry when he last met British Aerospace representatives to discuss the future of the company.
§ Mr. Pattie[pursuant to his reply, 27 February 1985, c. 322]: I most recently met the chairman of BAe last week and I am now in a position to make a statement about progress on the proposed sale of the Government shareholding in the company.
I announced on 15 January that, subject to the approval, as necessary, of the company's shareholders, it is intended that the offer for sale should take the form of a simultaneous offering of the Government's existing shares and new shares issued by the company. Subject to satisfactory market conditions and the completion of all necessary arrangements, it is intended that the offer will take place early in May. It is intended that application moneys in respect of the shares to be offered should be payable in two instalments.
Existing shareholders, subject to any legal restrictions overseas, will have preferential entitlements to acquire, pro rata to their existing shareholdings, the new shares to be issued by the company. The Government do not intend to take up their preferential entitlement to the new shares. The new shares to which the Government would have been entitled, together with any others which are not taken up by shareholders and the Government's existing shares, will be made available under the public offer and marketed to financial institutions, employees, existing shareholders and the wider public. In the event of an over-subscription, up to 5 million of the shares being sold by the Government will be reserved for preferential allocation to employees.
Selling commissions will be payable to stockbrokers, licensed dealers, members of the National Association of 151W Securities Dealers and Investment Managers and exempted dealers at the rate of 1¼ per cent. on allotments of shares to a fully-paid value of £10,000 or less in respect of applications submitted by them on behalf of others; and on larger allotments at the rate of ½ per cent. subject to a minimum of £125. Reallowance of part of these commissions will be permitted to certain specified financial intermediaries.
The expenses of the offer will in general be shared between the company and the Government in the same ratio as the proceeds of issue of new shares by the company bear to the proceeds of the sale of the Government's shareholding. However, certain expenses relating to advice which is relevant specifically to only one of the two parties will be borne separately by the party concerned.