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British Energy
Mr. Luff: To ask the President of the Board of Trade if he will make a statement on the outcome of the British Energy share offer. [37788]
Mr. Lang: I am pleased to report that the Government's UK public offer and international offer of shares in British Energy plc were successfully completed this morning, when dealings in interim rights started on the London stock exchange.
As a result of bids received in the international offer, the prices of the second instalments for all investors in the UK public offer and the international offer were set at 98p per interim right.
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Accordingly, the price for British Energy interim rights purchased in the United Kingdom public offer was 198p per share, comprising 100p paid on successful application and 98p to be paid by 16 September 1997.
The price for interim rights purchased in the international offer of British Energy shares was 203p per share, comprising 105p paid on successful application and 98p to be paid by 16 September 1997.
The Government offered for sale up to 610 million British Energy shares in the UK public offer and the international offer.
Some 600,000 applications were received in the United Kingdom public offer for a total of some 443 million shares. This represented about 2.4 times the shares initially expected to be sold in the UK public offer. In response to this demand, the Government increased the total number of shares allocated to the UK public offer to 260 million shares--some 43 per cent. of the shares offered. At this level, the number of shares applied for in the UK public offer represented some 1.7 times the shares available.
Almost 98 per cent. of applicants in the UK public offer received an allocation of shares; 41 per cent. of all applicants had their applications met in full.
Some 6,300 employees--about 94 per cent.--of the British Energy group applied for shares in their company. In addition 1,000 employees--about 24 per cent.--of Magnox Electric applied for shares. All employee and pensioner applications were met in full.
Excluding the retail tender, 295 million shares were allocated to bidders in the international offer. This number does not include any shares that BZW Securities Ltd. may have over-allocated in connection with the international offer. The extent of any such over-allotment will not be disclosed until later. As already announced, BZW Securities Ltd. may also effect stabilisation transactions. Excluding the retail tender, bids covered the minimum number of shares expected to be sold in the international offer about 2.4 times.
Individual investors bidding in the United Kingdom retail tender bid for some 72 million shares. Of this number, some 41 million shares were in respect of PEP applications. All PEP applications in the retail tender were met in full.
In addition to the shares sold in the UK public offer and the international offer, BZW Securities Ltd., as global co-ordinators for the sale, holds an option to acquire from the President of the Board of Trade up to a further 90 million British Energy shares for the purpose of meeting any over-allotment made by it in connection with the international offer. This option must be exercised by 14 August 1996.
Total gross proceeds from the privatisation, including debt and assuming the exercise in full of the option held by the global co-ordinators, amount to about £1,993 million, of which some £716 million of equity proceeds is expected to be received in this financial year.
Following the offers, and assuming the exercise in full of the option over British Energy shares granted by the President of the Board of Trade to BZW Securities Ltd., Her Majesty's Government expect to hold not more than
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1 per cent. of the issued share capital of British Energy plc. This amount comprises principally shares that may be needed to meet share bonus entitlements under the UK public offer.
Mr. Ingram:
To ask the President of the Board of Trade what was the cost of the Quigley review into the joint working arrangements of the research councils. [37396]
Mr. Ian Taylor:
Costs incurred by the working group on cross-council efficiency relate primarily to the time of group members from the office of science and technology and the research councils in respect of five meetings between August 1995 and January 1996, and widely distributed small proportions of staff time relating to data gathering and analysis. These costs could be calculated only at disproportionate cost.
Mr. Ingram:
To ask the President of the Board of Trade how much the research councils will contribute to the funding of the procurement function resulting from the Quigley review; and what savings have been projected for each of the research councils as a result of the new procurement arrangements over the next five years. [37397]
Mr. Taylor:
The intention is that improvements in the procurement function resulting from the Quigley review should be self-financing.
The Quigley review saw scope for potential savings in the region of £1.75 million from spending on payroll systems, travel and subsistence and computer support. A group of senior representatives of the research councils, chaired by the office of science and technology, has been set up to implement the recommendations of the Quigley review. The group has already begun the process of recruiting a procurement adviser. One of the tasks of the adviser will be to identify specific savings in all areas of procurement.
Mrs. Roche:
To ask the President of the Board of Trade what discussions his Department has had with small businesses about the compliance costs of the Asylum and Immigration Bill. [36657]
Mr. Page:
The Asylum and Immigration Bill is the responsibility of my right hon. and learned Friend the Home Secretary. This Department has had no discussion with small businesses or their representative organisations.
Mrs. Roche:
To ask the President of the Board of Trade what estimate he has made of the cost to public funds of his Department's current consultation with small firms regarding whether large companies should report payment practice in their annual report. [36656]
Mr. Page:
I refer the hon. Lady to the reply I gave her on 4 July 1996, Official Report, column 496.
Mr. Corbyn:
To ask the President of the Board of Trade what representations he has made to the World Trade Organisation concerning trade in goods produced by child labour; and if he will make a statement. [36321]
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Mr. Nelson
[holding answer 10 July 1996]: The Government deplore any exploitation of children and are fully committed to international action to stop it, for example through the UN and the International Labour Organisation, but do not consider that action through the World Trade Organisation would be an appropriate means to achieve this.
Mr. Corbyn:
To ask the President of the Board of Trade what restrictions are placed on the importing of goods produced by child labour; and if he will make a statement. [36317]
Mr. Nelson
[holding answer 10 July 1996]: I have nothing to add to the answer I gave to the hon. Member on 19 June 1996, Official Report, column 508.
Mr. Tony Lloyd:
To ask the President of the Board of Trade what funding was provided by his Department's export market research scheme for the market report, "Police and Public Security Requirements for Equipment and Services in the countries of the Arabian Peninsula" published in June 1994, and what proportion this was of the total cost of the report. [36362]
Mr. Nelson
[holding answer 10 July 1996]: The report was partially funded through the export marketing research scheme--EMRS--under the terms and conditions applicable at the time for trade associations using the scheme for the first time--75 per cent. The total cost of the project was £63,920, the EMRS contribution was £47,940. The report covered six countries in the Arabian peninsula and was restricted to marketing research only.
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Mr. Cousins:
To ask the President of the Board of Trade what is his policy on the distribution of orphan funds between insurance policyholders; and what sums have so far been identified and apportioned. [37022]
Mr. Nelson
[holding answer 12 July 1996]: My policy remains as set out in the answer given by the then Under-Secretary of State for Corporate and Consumer Affairs on 24 February 1995, Official Report, columns 362-63.
The following companies have made announcements in the light of the policy:
| Company | Long-term business assets £ billion | Amounts reserved solely for benefit of shareholders £ billion |
|---|---|---|
| United Friendly Insurance | 2.4 | 0.3 |
| Legal and General Group | 21.8 | see below |
| Pearl Assurance | 12.1 | 1.0 |
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