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3 April 2001


PARTNERSHIPS UK BECOMES A PUBLIC PRIVATE  PARTNERSHIP - ANDREW SMITH

The Treasury has successfully completed the sale to private investors of a majority share in Partnerships UK, the company set up by the Government to drive forward public private partnerships, Andrew Smith Chief Secretary to the Treasury announced today.

The sale was 30 per cent oversubscribed by the market.  This strong demand represents a vote of confidence for Partnerships UK and for the public private partnership market as a whole and for an increase in the number of wider markets projects being undertaken by Partnerships UK.  Partnerships UK is now a public private partnerships in its own right. The Treasury and Scottish Executive will retain a minority shareholding of 49 per cent.

Speaking about the sale, Andrew Smith said:

?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.  We now look forward to their contribution towards our continuing programme of expansion in this market across Government.?

Bids were sought between £1m and £5m.  In view of the large interest in the sale to qualifying investors it has been necessary to scale down some of the bids to lower denominations of £1m - £5m.

The investors represent a cross section of the marketplace from banks, financial institutions and other corporates.

NM Rothschild & Sons Limited acted as financial adviser and Placing Agent for the Government.


NOTES TO EDITORS

  1. Partnerships UK was advised by UBS Warburg.
  2. Partnerships UK was launched in June 2000 to build upon the success of the Treasury Taskforce and to provide a permanent and sustainable centre of expertise to continue the Treasury Taskforce's role in developing and expanding the Government's PPP programme.  It aims to develop and implement better and more efficient PPPs, including Wider Market projects. It will do this by working with public bodies on specific PPP transaction, aiming to improve the process of planning, negotiating and completing PPPs.
  3. Partnership UK will now be 51 per cent owned by the private sector and 49 per cent owned by the Treasury and Scottish Executive.  Partnerships UK has been established with a defined public sector mission.
  4. Press Enquiries to Malcolm Graves at HM Treasury on 020 7211 1366.

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