FirstGroup PLC Statement re South Western rail franchise competition
September 07 2016 - 9:15AM
UK Regulatory
TIDMFGP
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 GBP30, 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 GBP100.
Further information, FirstGroup plc:
Faisal Tabbah, Head of Investor Relations
Tel: +44 20 7725 3354
END
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