As part of the government’s plans to sell £20bn-worth of assets by 2020, the UK is offering its stake to private bidders until the end of October with final agreements set to be made during the first quarter of 2015 (prior to the general elections in May). According to a report by The Sunday Times, the deal could raise up to £300m.
Chancellor George Osborne announced the plans in a Treasury statement. “I am determined that we go on making the decisions to reform the British economy and tackle our debts,” he said. “Ensuring we can deliver the best quality infrastructure for Britain and the best value for money for the taxpayer are key parts of our long-term economic plan.”
Private-equity group Ardian and French firm Antin Infrastructure Partners are rumoured to be on the list of potential bidders
Private-equity group Ardian and French firm Antin Infrastructure Partners are rumoured to be on the list of potential bidders, Bloomberg reports.
The UK government has owned its stake in the Channel tunnel rail company for 20 years. The remaining 60 percent is owned by French rail firm SNCF (55 percent) and Belgian company SNCB (five percent). The British government earned £7.4m from the £18.6m Eurostar paid to owners last year. From its £857m worth of sales the company raked in profits of £54m, with 10.1m passengers passing through its doors.
The rail firm recently announced plans to add new connections, including one between London and Amsterdam, due to be ready by the end of 2016. Meanwhile the Channel Tunnel will also be opened up to Eurostar rival Deutsche Bahn, which plans on running trains to London from Germany.
The move to privatise the stake is set to be one of many in the government’s efforts to reduce the debt raised in the 2008 crisis, with plans already underway to sell the majority of its share in Lloyds Bank.
“As part of our aim to achieve £20bn from asset sales by 2020, the sale proceeds would make an important contribution to the task of reducing the public sector debt,” Osborne said in the statement.