About our services

UKGI holds responsibility for a number of corporate governance and finance projects and government assets.

Fitting with its core purpose to be the UK government’s centre of excellence in corporate finance and corporate governance, UKGI is currently responsible for:

  • managing a portfolio of 27 businesses (including financial institutions managed by UKFI) in which the government has a shareholding, working with at least 10 government departments and management teams to help these businesses perform as commercially as possible; and
  • providing specialist corporate finance advice across government, including advising on the sale of government assets, launch aid and government financial interventions into corporate structures, and leading the public sector spectrum release programme.

The UKFI subsidiary company of UKGI is responsible for managing the Government’s shareholdings in financial institutions, including The Royal Bank of Scotland Group plc and Lloyds Banking Group plc. UKFI is also responsible for managing the Government’s 100% shareholding and loans in UK Asset Resolution Ltd (“UKAR”) and its subsidiaries.

Key areas of work in the past year

Governance

In 2015 and 2016 our objectives and deliverables have included working closely with government departments to:

  • Lead the transition to a new, simplified business and governance model for Sellafield.
  • Establish the Oil & Gas Authority (OGA) as a new Executive Agency of DECC from 1 April 2015, following the recommendations of the Wood Review.
  • Lead Ordnance Survey’s transition from a trading fund to a government company, better positioning it to respond rapidly changing markets and remain at the heart of the global geospatial industry.
  • Establish a joint Network Rail (NR) shareholder team between UKGI and DfT, providing a robust and balanced governance framework that will enable NR to deliver better outcomes for passengers at value for money to taxpayers.

Transactions

In 2015 and 2016 our objectives and deliverables have included working closely with government departments to:

UKGI Limited

  • Complete the sales of Eurostar International Limited (which sold for £757.1m in March 2015) and the government’s residual stake in Royal Mail (the final stake was sold in October 2015, completing the government’s privatisation that realised over £3.3 billion in proceeds for the Exchequer).
  • Develop and agree the contractual arrangements underpinning EDF and China General Nuclear Corporation’s commitment to the Hinkley Point C new nuclear project.

UKFI Limited subsidiary of UKGI

  • Complete an initial sale of government shares in The Royal Bank of Scotland (RBS) (sold for £2.1bn in August 2015), and also £13bn of former Northern Rock mortgages.
  • Continue with the sale of government shares in Lloyds Banking Group (LBG). From the period beginning on 17 December 2014 to 3 December 2015, approximately 11.2 billion ordinary shares were sold under UKFI’s Trading Plan at an average price of greater than 81p per share. [Link to UKFI webpages] Building on these successes, UKGI continues to play a key role in driving forward the government’s corporate and financial asset sales objectives for the current Parliament. This includes pursuing further sales of government shares in Lloyds Banking Group and RBS, the sale of the Green Investment Bank, and a first sale of the pre-2012 income contingent repayment Student Loan book.

Corporate Finance

Providing expertise in all significant negotiations between government and the private sector, for example when government considers whether to put money into corporate structures in support of companies in distress.

Case study: The Shareholder Executive’s (prior to its incorporation into UKGI) Special Situations Team brought key corporate restructuring skills to the government’s financial interventions into both UK Coal and Hatfield – it worked with DECC and BIS colleagues to advise Ministers as to the most appropriate value for money intervention, and led on the execution of these interventions.