Investors fear further Royal Mail sale as lock-up expires

The lock-up that blocks the Government from offloading more shares in Royal Mail expires on Sunday, raising investor fears the postal service could be hit by a stake sale.

The Government pledged to retain its near-30pc stake in Royal Mail for 180 days after the start of unconditional trading of shares in the group. But the so-called lock-up agreement has now lapsed, giving the state free rein to sell down its holding in the postal company, which could hurt the price of Royal Mail shares.

Nervousness about the lock-up has already weighed on the stock, with shares in the mail company down 12.1pc since the beginning of April.

Read more: Investors fear further Royal Mail sale as lock-up expires – Telegraph.