UK government sounding out potential advisers for sale of 40% stake in Eurostar
The UK government has begun sounding out investment banks regarding an advisory mandate on the sale of its 40% stake in Eurostar, Sky News reported.
Sky News City editor Mark Kleinman quoted from a statement issued on 6 February by the UK Department for Transport (DfT), in which the department said it is looking to hire advisers to help decide whether selling the government’s stake in the cross-Channel train service would represent value for taxpayers.
It is understood that the DfT and the government’s Shareholder Executive department has asked about six banks to make pitches for the mandate this week, as well as the next, Kleinman said.
Analysts cited by the report estimated a valuation of GBP 200m (EUR 240m) for the government’s 40% shareholding in Eurostar.
SNCF, a French state-backed, rail operator holds a 55% stake in Eurostar and is considered most likely to make an offer for the UK government’s stake, Kleinman said.
The German rail operator Deutsche Bahn had previously indicated its interest in Eurostar, but subsequently announced it intends to operate a rival rail service using the Channel Tunnel, Kleinman added.
Kleinman noted talk that the Italian state rail company (Trenitalia) and infrastructure funds could acquire the UK government’s stake in Eurostar.
Source Sky News