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HULL SELLS COMMUNICATIONS COMPANY FOR OVER£100M

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Hull City Council has sold its remaining stake in Kingston Communications, ending a 105-year involvement with the i...
Hull City Council has sold its remaining stake in Kingston Communications, ending a 105-year involvement with the internet and telephone company.

The council is expected to get£107m from the sale of its 157,500,000 shares at a price of 68p each. Shares previously reached a high of£15.90.

Council shareholding committee chair Cllr Andy Sloan (Lib Dem) said: 'The decision to sell the council's remaining stake was made because it was in the best interests of the city, its people, local businesses, local shareholders, and indeed the company.

'Retaining a 30.6% stake in the local telecoms provider by the council made little strategic sense to us.

'Given the yield of the shares, and the long-term growth strategy of Kingston Communications, there was also little incentive for the council to deploy£100m of its scarce capital in a shareholding in one company.'

The council would not comment on what the£100m would be used for.

Cllr Sloan added: 'While at this stage it is premature to discuss how this capital can be used for the long-term strategic benefit of the city, it remains the case that this capital can currently provide a better investment income deployed in a diversified managed portfolio.'

Finance & corporate services

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