§ Mr. Robert Atkinsasked the Secretary of State for Trade and Industry if he will make a statement on progress on the privatisation of Unipart and Leyland Bus.
§ Mr. Giles ShawOn 24 July 1986, my right hon. Friend announced that agreement in principle had been reached on the sale of Unipart and, separately, Leyland Bus to management-led consortia. I am pleased to announce that the contractual arrangements relating to both sales have now been completed.
Unipart has been acquired by UGC Ltd, a consortium of its management and employees and a group of institutional investors. Employees of Unipart are being given the opportunity to subscribe for a 12 per cent. interest in UGC whilst the Unipart managers' share in the company may rise from an initial 10 per cent. to 20 per cent. if performance targets are met.
On Leyland Bus, it was contemplated in July that the management consortium would purchase Leyland Bus and 33 per cent. of Leyland Parts for a sum of £11.7 million. Following detailed negotiations, it has now been determined that the management consortium will purchase Leyland Bus for a sum of £4 million, subject to audit. Leyland Parts will, however, remain within Leyland Vehicles Ltd, continuing to market bus parts on behalf of the privatised bus company. Appropriate contractual arrangements have been negotiated between the parties. Employees are to be given an opportunity to own shares in the business on a basis to be determined.
The Government hope that the new private sector companies will take advantage of these opportunities to develop viable and successful enterprises.