Advising on major corporate finance matters, including all major UK government financial interventions into corporate structures and major UK government corporate finance negotiations
We provide specialist corporate finance advice across government and support the government’s financial interventions into corporate structures.
We also deploy our expertise in all significant negotiations between the government and the private sector, for example when the government considers whether to put money into corporate structures in support of companies in distress.
As part of this, our Special Situations team of corporate restructuring practitioners, including qualified insolvency practitioners and experienced restructuring bankers, advises ministers and departments where there is actual or likely financial distress in a company or sector.
Case Studies
UK Coal
Financial interventions
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.
Public Sector Spectrum Release Programme
More Wi-Fi, better mobile phone coverage and smarter infrastructure
UKGI runs the Public Sector Spectrum Release Programme through the Central Management Unit (CMU) on behalf of the Department for Digital, Culture, Media & Sport (DCMS). The government’s target is to release 750MHz of spectrum by 2022. CMU works with government departments, partners and Ofcom to facilitate the release of spectrum from the public to the private sector, to enable economic growth. ‘Smart motorways’, driverless cars, and better mobile phone and Wi-Fi connectivity on trains are just some of the possible uses for the released spectrum.
So far, nearly 400MHz have been released with plans for the sale of more in the future. Around 190MHz of spectrum will shortly be auctioned by Ofcom for mobile phones. This sale is expected to realise a significant receipt for government.
Repayable Launch Investment
Commercial negotiations for aerospace contracts
UKGI takes a lead role for government in the commercial negotiations with industry for aerospace Repayable Launch Investment (RLI) contracts, to support the design and development of new aircraft programmes, such as the A350XWB aircraft with Airbus and GKN. This involves working with a wide range of officials from the Department for Business, Energy and Industrial Strategy (BEIS) and HM Treasury, as well as independent financial, technical and legal advisors. These are complex contracts to negotiate and construct – each being bespoke – and involve large sums of public funding. Securing agreement with applicant companies on RLI contracts involves intensive negotiations over key contract terms, including aspects such as target returns, levy rates, product definitions, security and contract duration.