PART TWO
The
priority was to obtain a strategic partner to help develop the business rather than
maximising
initial sale proceeds
More Information
The Department saw advantages in progressing the privatisation despite difficult timing
The Department held exploratory meetings with potential investors
The competitive process produced one credible bidder
Private equity deals involve significant inherent differences of interest
The Department was not involved in the design of the share incentive scheme although it assessed and approved it
The final bids were lower than earlier valuations had suggested
The commercial value of the Long Term Partnering Agreement was not fully understood
The QinetiQ pension fund had a significant deficit
The National Audit Office consider that the business may have been undervalued in the sale to Carlyle
In the final deal, proceeds fell to £155 million