Under the Employee Share Offers, eligible employees of Royal Mail Group Limited can receive shares in two ways:
An automatic award of shares through the Free Shares Offer
Buying extra shares through the Employee Priority Offer
The Employee Share Offers will only apply if the flotation takes place. If the flotation takes place but is delayed the Government may decide to make new arrangements for the offers. The Government is responsible for deciding whether or not to go ahead with the flotation. If the flotation does not take place, eligible employees will not receive any shares under the Employee Share Offers.
Government will make 10 per cent of shares in Royal Mail available to eligible employees (who have not opted out), automatically and for free, at the time of flotation, under the Free Shares Offer. More employees will be able to take part in the Free Shares Offer than in any other UK privatisation for almost 30 years. Approximately 150,000 employees are eligible for Free Shares. It is the largest free stake of any major UK privatisation.
Eligible full-time employees will receive the same number of shares, regardless of their grade, with a pro-rata allocation for part-time employees based on their paid hours.
The overwhelming majority of Royal Mail Group Limited’s employees in the UK, including employees working in Parcelforce Worldwide, will be eligible for Free Shares if they meet certain criteria. Employees of GLS, and other subsidiaries and joint ventures (including Romec and Quadrant) are not eligible to receive Free Shares.
Employee Priority Offer
Eligible Royal Mail employees will have the option to apply to buy Royal Mail shares through the Employee Priority Offer, at the same price as members of the general public. They will be given priority over members of the public when shares are allocated (up to £10,000).
Royal Mail has communicated the details of the Employee Share Offers to its 150,000 employees.