CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
☰
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
✖

UK govt to sell Eurostar stake to Patina Rail LLP

Article By: ,  Financial Analyst
March 4, 2015 12:26 PM

The UK government has announced that it is selling its 40 per cent stake in Eurostar.

Chancellor George Osborne announced that Anglo-Canadian consortium Patina Rail LLP would be purchasing the interest in a deal for £757.1 million. The government has been planning to sell since announcing its Autumn Statement and National Infrastructure Plan in 2013. Mr Osborne explained that the price tag was "far more than people expected".

Eurostar, a passenger rail service which connects London to France and Belgium, is currently split between three parties in terms of ownership. The UK government owns 40 per cent while the remainder is made up of French and Belgian national railways.

The Patina Rail LLP consortium is made up of Canada's Caisee de Depot et Placement du Quebec (DCPQ) and UK-based Hermes Infrastructure. Under the terms of the new agreement DCPQ will have a 30 per cent share while Hermes will have ten per cent.

Commenting on the deal, Mr Osborne added: "This is a very good deal – it means we can cut the national debt, it means we can invest in our national infrastructure and it's fantastic value for British taxpayers. It's all part of our long-term plan to secure Britain's future."

Strong passenger numbers growth

The popularity of the Eurostar has not wavered in recent times with a report published in July 2014 showing that passenger numbers had grown by two per cent during the first half of the year. This equated to an increase from 4.9 million to five million in the space of just six months. Revenues on the service had also been boosted 0.5 per cent to £456 million from £453 million.

However, the traditionally busy summer resulted in a slight slowing of growth due to the fall in demand for holidays in northern Europe combined with people preferring to stay at home to watch the World Cup.

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.

© City Index 2024