FIRSTGROUP PLC - Statement re South Western rail franchise competition
08 September 2016 - 12:15AM
PR Newswire (US)
FIRSTGROUP PLC
SOUTH WESTERN RAIL FRANCHISE COMPETITION
First MTR South Western Trains Limited, a joint venture between
FirstGroup plc (the ‘Group’) subsidiary First Rail Holdings Limited
(‘FRH’) and MTR Corporation (UK) Limited (‘MTR UK’), has today
submitted a bid to the Department for Transport in respect of the
South Western rail franchise.
The two shareholders have also entered into a joint venture
agreement governing First MTR South Western Trains Limited, which
amongst other terms provides that, in the event of a default by
either shareholder, the other shareholder will have the right to
acquire the defaulting shareholder's shares for fair value, such
amount not being subject to any cap. As a consequence and by
application of Chapter 10 of the Listing Rules (in particular
paragraph 5R (3A) of Annex 1 to Chapter 10), the Group is required
to comply with Listing Rule 10.4.1. In compliance with that
obligation, the Group provides the following information: under the
joint venture terms FRH holds 70% of the equity in First MTR South
Western Trains Limited and MTR UK holds the remaining 30%, with MTR
UK acquiring its shares from FRH for an aggregate consideration of
£30, which has been satisfied from MTR UK's existing financial
resources. First MTR South Western Trains Limited has no trading
history and has gross assets of £100.
Further information, FirstGroup plc:
Faisal Tabbah, Head of Investor
Relations
Tel: +44 20 7725 3354
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