Portfolio Unit
The Portfolio Unit is responsible for a portfolio of Government owned or part owned-owned businesses. The businesses in this Unit include those where ShEx has a clear shareholding mandate or a seat on the board. Our involvement in each business varies across the Portfolio Unit depending on our agreed role and ability to have the greatest impact.
The businesses are actively reviewed through a formal Investment Review cycle as well as ongoing day-to-day monitoring. Key areas of focus include business performance and strategy, management composition and remuneration, financing and, where appropriate, changes in Government’s shareholding.
The portfolio includes the following businesses, some of which have been part of ShEx’s portfolio for some time and others which are recent additions:
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Select transactions / assignments
£265m Sale of the Horserace Totalisator Board (the Tote) to Betfred (2011/10)
The Shareholder Executive led the sale of Tote on behalf of the Department for Culture, Media and Sport (DCMS). Sale of the Tote to the UK bookmaker Betfred was agreed for £265m.
This came at less than a year after the Chancellor announced the Government’s intention to resolve the future of the Tote, and follows numerous failed attempts to do so in the past. The transaction delivers much needed certainty to the Tote and its employees so they can continue to develop the business as part of a larger group for the benefit of all stakeholders. In addition, racing will benefit from payments of more than £155m as a result of this deal.
The sale has been achieved in line with the Government’s declared objectives of recognising the support the Tote currently provides to the racing industry whilst also securing value to the taxpayer.
Vesting of the Royal Mint (2009/10)
The Shareholder Executive took a proactive role in improving the performance of the Royal Mint over a number of years and this culminated in successful vesting on 31 December 2009. Vesting has allowed the Mint to enjoy the benefits of becoming a company, including a clearer governance framework and greater transparency and focus in its commercial decision-making.
Sale of commercial business unit of UK Atomic Energy Authority (2009/10)
The UK Atomic Energy Authority reached an agreement with Babcock International Group for the sale of 100% of its commercial arm, UKAEA Limited, for £50m. The sale followed the announcement of 30 March 2009 that UK Atomic Energy Authority was seeking a buyer for UKAEA Limited. The sale of the business would help to reinforce the UK’s strong heritage in the nuclear industry and provide a platform for the further development of skills in this important marketplace.
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