§ Mr. Pikeasked the Secretary of State for Trade and Industry what further representations he has received regarding the proposed privatisation of Rolls-Royce; and if he will make a statement.
§ Mr. PattieMy right hon. Friend and I have received a number of representations about the company's privatisation. We welcome the return of Rolls-Royce to the private sector, further details of which were announced earlier today, including the offer for sale price.
§ Mr. Bendallasked the Secretary of State for Trade and Industry if he will make a further statement on the privatisation of Rolls-Royce.
§ Mr. ChannonThis morning the offer for sale of ordinary shares in Rolls-Royce was made at a price of £1.70p per share. This represents a market capitalisation 77W of £1,362.5 million. The total number of shares being made available under the offer is 801,470,588, of which 789,705,883 have been fully underwritten and subunder-written, the balance representing shares made available under arrangements by which employees can obtain shares free of charge.
Approximately 328 million shares are initially being offered to the general public including Rolls-Royce employees and pensioners. If the offer is at least twice subscribed, this number will be increased to 407 million shares, some 50 per cent. of the total. The remainder of the shares will be placed with financial institutions in the United Kingdom. There is no overseas offering.
Prospectuses and application forms will be published in certain newspapers from Thursday 30 April. In addition, all those who have registered with the Rolls-Royce share information office will be sent a prospectus, including a public application form. Copies will also be available from 30 April from certain banks and stockbrokers. Applications must be received by 10 am on Thursday 7 May.
Copies of the prospectuses are being placed in the Library of the House today.