UK government presses forward with its 40pc Eurostar stake sale
Mon, 13 Oct 2014 | DIVISION SALE
The British government has kick started its search for buyers for its 40 per cent holding in the cross-Channel train firm Eurostar, as laid out in the Autumn Statement last year.
It is hoped that about £20 billion will be raised via corporate and financial asset disposals by 2020, and that a sale of Eurostar will add £300 million to the public purse ahead of the election.
George Osborne confirmed the plans today, Monday 13th October. The Chancellor said: “I am determined that we go on making decisions to reform the British economy and tackle our debts. So we will proceed with the potential sale of the UK’s shareholding in Eurostar today.”
The RMT Union and the Labour Party have reservations about the sale. Mick Cash, the general secretary of the RMT rail union, said the move could lead to a larger chunk of UK’s railways in foreign ownership.
“This compounds the issue of foreign ownership of Britain’s railways as the French state has first refusal on our slice of the highly profitable Eurostar cake. The French and Belgians think we are insane knocking off such a valuable and strategic infrastructure asset.”
A deadline for expressions of interest to the Treasury has been set at the end of this month, with hopes of a sale completion during the first quarter of 2015. It is thought pension companies, infrastructure and investment funds will be interested in bidding.
Other assets in line for potential sell offs include the Royal Mail pension assets, the government’s student loan book as well as its stake in the uranium company URENCO.
The Swiss bank UBS is advising Mr Osborne, who will retain the right not to agree a sale if bids are not high enough.
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