HM Treasury has sold 51% of the wholly owned government company Partnerships UK to private investors, raising £45m. The Treasury and the Scottish Executive will retain the remaining 49%.

Andrew Smith, chief secretary to the Treasury announced the sale: "The market has given a vote of confidence to the development of public private partnerships across Government. The level of interest from investors is a clear vindication of the Government's approach for delivering modern, high quality public services and promoting the UK's competitiveness.

"This represents a statement of confidence in Partnerships UK and, on a broader basis, the whole PFI industry and Wider Markets initiative in which Partnerships UK is centrally placed."

The investors include AXA Investment Managers, Prudential, Abbey National, Barclays, Royal Bank of Scotland, Bank of Scotland, Halifax, Serco, British Land, Group 4 Falck and Jarvis.

Derek Higgs, chairman of Partnerships UK said: “We are delighted with the result of the capital raising and with the level of interest that saw it 30% oversubscribed. I particularly welcome the quality and diversity of shareholders and look forward to working with them to drive Partnerships UK’s business forward.”

Chief executive, James Stewart, added: “Partnerships UK can now deploy capital to energise the public private partnership (PPP) market and fulfil its mission to help the public sector deliver PPPs.”

The Government announced its plans to seek private investors at the beginning of last month (see News story). Bids were sought between £1m and £5m.
Jessica Jarlvi

Jessica Jarlvi