UK Company Histories

United Kingdom · Company filings

How the government sold BT in three share offerings

The UK government first offered a majority of British Telecommunications shares in 1984. It sold more shares in 1991 and 1993 and relinquished its remaining special share in 1997.

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UK Company Histories Editorial Team

British company ownershipBritish Telecommunications transfer and privatisation milestones
  1. 12 April 1984
    Telecommunications Act gains Royal Assent

    The Act provided for transfer of the statutory corporation’s business. Source 1

  2. 6 August 1984
    Business transferred

    British Telecommunications plc took over the business, property, rights and liabilities. Source 1

  3. November 1984
    First public offer

    The government offered 50.2% of the shares to the public and staff. Source 1

  4. November 1991
    Second share issue

    BT records the sale of 1.598 billion shares, raising about GBP 5 billion. Source 1

  5. July 1993
    Third share issue

    The government sold nearly all its remaining shares for about GBP 5 billion. Source 1

  6. July 1997
    Special share relinquished

    The share had conferred special takeover and board appointment rights. Source 1

The first offering transferred a majority. The later sales reduced the government’s remaining holding.

Source 1 Source 2

The Act created the route to a sale

British Telecommunications had operated as a statutory corporation. The 1984 legislation set up the transfer of the business, property, rights and liabilities to British Telecommunications plc. At first the government still held all the shares in the public limited company. Source 1

The first sale offered the majority stake

BT’s archive records that 50.2% was offered to the public and employees in November 1984. The distinction between the August business transfer and the November offer matters. Ownership of the business and ownership of the new company’s shares changed on separate dates. Source 1 Source 2

Two sales followed in the 1990s

The archive puts the 1991 offering at 1.598 billion shares and about GBP 5 billion. The July 1993 issue brought in about another GBP 5 billion and left the government with very little ordinary equity. BT’s shareholder guidance identifies the three original sale periods. Source 1 Source 2

The special share outlasted most of the equity

According to the archive, the government retained a special share with the ability to block a takeover and appoint two non-executive directors. It gave up that share in 1997. The special rights can therefore have a different end date from the large public sales. Source 1

Sources

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