06-20-2020, 04:20 AM
Electricity distribution privatised in £8 billion sale
The long-planned sale of Britain’s regional electricity generation companies was completed today with all twelve firms fully sold and floated on the stock exchange.
Around three-quarters of the five million applicants will receive shares, including 98% of employees who now collectively own around 7% of the electricity generation companies. Around 2 billion shares were sold at £2.40 each, and the government expects the companies to repay the government around £3 billion of debt - raising a total of £8 billion for the exchequer.
Shares immediately jumped by around 50 pence in early trading, which the Department for Trade and Industry attributed to “generally improved market conditions” since the price was set in November.
The privatisation of the 12 regional electricity distribution companies completes the first half of the planned privatisation of the industry, with power generation remaining in the public sector for now. Since 1989 power generation has been split between PowerGen, National Power, and Nuclear Electric, and the Government has previously announced its intention to sell 60% of the shares in PowerGen and National Power in February 1991.
The long-planned sale of Britain’s regional electricity generation companies was completed today with all twelve firms fully sold and floated on the stock exchange.
Around three-quarters of the five million applicants will receive shares, including 98% of employees who now collectively own around 7% of the electricity generation companies. Around 2 billion shares were sold at £2.40 each, and the government expects the companies to repay the government around £3 billion of debt - raising a total of £8 billion for the exchequer.
Shares immediately jumped by around 50 pence in early trading, which the Department for Trade and Industry attributed to “generally improved market conditions” since the price was set in November.
The privatisation of the 12 regional electricity distribution companies completes the first half of the planned privatisation of the industry, with power generation remaining in the public sector for now. Since 1989 power generation has been split between PowerGen, National Power, and Nuclear Electric, and the Government has previously announced its intention to sell 60% of the shares in PowerGen and National Power in February 1991.
Steve | A-Team