LONDON (Alliance News) - The UK government on Wednesday said it has reached a deal to sell the state's remaining stake in cross-channel rail service Eurostar International Ltd for GBP757.1 million.

Chancellor George Osborne and Chief Secretary to the Treasury Danny Alexander said a consortium comprising Canadian institutional investor Caisse de dépôt et placement du Québec and Hermes Infrastructure, a unit of UK-based investment manager Hermes Investment Management, has agreed to buy the government's 40% stake in the high-speed rail operator at a price higher than the expectations which had been set out when offers were invited in October.

In addition, Eurostar has agreed to redeem the government's preference shares, raising a further GBP172 million for the exchequer.

"It?s great that we have reached an agreement to sell the UK?s shareholding in Eurostar that delivers a fantastic deal for UK taxpayers that exceeds expectations," Osborne said.

By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance

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