| In December 2005,
STAR completed the acquisition of 75.2% of Abellio GmbH (“Abellio”),
the Essen-based public transport operator, from Abellio Beteilegungs
GmbH (“ABG”) (a subsidiary of the City of Essen). ABG
will continue to hold a minority stake in the business.
Abellio is a German transport company with interests
in both local transport (bus and trams) and regional rail operations.
In has secured three regional rail concessions in the North Rhine
Westfalia region and also owns a bus business in Eastern Germany.
This will provide the platform for the development of the business.
The rate of privatization in the German transport
market is gathering pace and Abellio is well placed to benefit from
this trend. STAR intends to support the Abellio management to take
advantage of these market dynamics and pursue an acquisition strategy
to develop the leading independent operator in the German public
transportation sector.
Why does Abellio fit STAR’s investment strategy?
- Public transportation is a core service and a capital intensive
business.
- The contracts provide for strong and long term cash flow and
good downside risk protection.
- Abellio is run by a strong and experienced management team.
- It offers the opportunity to enhance value and generate upside
by acquiring similar businesses in the sector.
http://www.abellio.de
 
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