Shareholders today approved plans for Britain's biggest privatisation since Prime Minister Tony Blair took power in 1997, agreeing to float part of QinetiQ, a technology firm carved from the Ministry of Defence.
Analysts expect the IPO to value the company at about £1 billion sterling, with the Ministry of Defence and US private equity firm Carlyle Group each reducing their stakes.
Some opposition politicians have criticised the controversial floatation, calling for an investigation into whether the Carlyle stake was handed over too cheaply when it paid £42m for a 31% stake in 2003.
The IPO is planned for February subject to market conditions, the government said in a statement. 'Following the IPO, both the government and Carlyle will continue to retain a significant stake in the company,' it said, adding that the government will also retain a special share in Qinetiq to protect the UK's defence and security interests.
Analysts expect both shareholders to sell about half of their holdings but no such details were announced. In addition to Carlyle, the defence ministry owns 56% of QinetiQ while employees also own a stake.
QinetiQ used to be part of the MoD's former Defence Evaluation Research Agency (DERA). It has developed technology including scanners used to detect concealed weapons, illegal stowaways on trucks and debris on airport runways.
The company employs 11,500 people, about a quarter of them in the US where it has bolstered its prescence through acquisitions in recent years.
