The UK’s Royal Mail system is continuing its journey to privatize, recently appointing Goldman Sachs and UBS to oversee and advise on the proceedings. The system is planning to issue an initial public offering on the London Stock Exchange later this year.
The two financial companies will collect £30 million to direct the £3 billion future of the world’s oldest mail system, established under King Henry VIII in 1516.
Like many mail systems around the world, the Royal Mail had seen major impact from its users switching to electronic communications, however, in the last year, its earnings have improved, mostly through delivering packages from online shopping. In the latest result for the year, which ended on March 31, which saw revenues grow to £9.15 billion, up from £8.76 billion in 2012. Net profit also rose to £403 million from £152 million in the previous mail.
The Communication Workers Union in the UK, which represents the majority of Royal Mail workers, has already threatened a summer disruption over the proceedings, stating it would not be in the public or the workers’ interest to have the system sold.
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