FirstGroup PLC Statement re: Shortlisting for West Coast Partnership

 
TIDMFGP 
 
Statement re: Shortlisting for West Coast Partnership rail franchise 
                                  competition 
 
First Trenitalia West Coast Rail Limited, the partnership between FirstGroup 
plc ('FirstGroup') and Trenitalia UK Limited ('Trenitalia'), has today been 
shortlisted by the Department for Transport for the West Coast Partnership. 
 
Commenting, Steve Montgomery, First Rail Managing Director said: 
 
"FirstGroup, with our partner Trenitalia, will bid for the upcoming West Coast 
Partnership. We are well positioned with our partner to develop a completely 
new customer proposition both on the West Coast route, and, through the 
exciting opportunity this franchise offers, to design and run initial services 
on the HS2 network. 
 
"We have a strong track record in delivering continued modernisation and 
investment, alongside industry partners, through our rail operating companies 
Great Western Railway, TransPennine Express and Rail Operator of the Year, Hull 
Trains. In August, we will begin operating the South Western rail franchise 
where we will deliver GBP1.2bn of investment and improve the experience for 
customers, with better trains, more seats and quicker journeys. 
 
"Our partner Trenitalia is one of Europe's top railway operators, and manages 
long haul services, both on high speed and conventional lines, as well as 
regional and metropolitan services. That complements our expertise in running 
long distance services such as those found on the West Coast routes." 
 
Commenting, Barbara Morgante, CEO of Trenitalia, said: 
 
"Trenitalia will bring FS Italiane Group's industry-leading high speed rail 
knowledge to the West Coast Partnership. Since our acquisition of the c2c 
franchise, we have overseen a significant improvement in the network's 
performance and we are now looking forward to bringing this experience to the 
wider UK market. 
 
"We believe that the UK rail market provides an excellent opportunity for the 
group to leverage its experience accrued in the highly competitive Italian 
market. 
 
"Together with FirstGroup, we will focus on the customer experience and look 
forward to developing innovative proposals through which West Coast and HS2 
passengers will be able to realise the most benefit from our services." 
 
Notes 
 
1.   First Rail Holdings ('FRH') and Trenitalia UK have entered into an 
agreement governing First Trenitalia West Coast Rail Limited to participate in 
the West Coast Partnership franchise competition, 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 terms of the partnership FRH holds 70% of the 
equity in First Trenitalia West Coast Rail Limited and Trenitalia UK holds the 
remaining 30%, with Trenitalia UK acquiring its shares from FRH for an 
aggregate consideration of GBP30, which has been satisfied from Trenitalia UK's 
existing financial resources. First Trenitalia West Coast Rail Limited has no 
trading history and has gross assets of GBP100. 
 
2.   Both FirstGroup and Trenitalia hold 'Pre-Qualification Questionnaire 
Passports' with DfT Rail Executive which shows that they have satisfied basic 
financial and other competence criteria and allows them to submit franchise 
bids to Government. In December 2015, Trenitalia became the first new entrant 
to be awarded a PQQ Passport by the Department for Transport and since then is 
pursuing a number of franchise opportunities. 
 
FirstGroup plc (LSE: FGP.L) FirstGroup plc is a leading transport operator in 
the UK and North America. With GBP5.7 billion in revenue and more than 100,000 
employees, we transported around two billion passengers last year. Each of our 
five divisions is a leader in its field: In North America, First Student is the 
largest provider of student transportation with a fleet of around 44,000 yellow 
school buses, First Transit is one of the largest providers of outsourced 
transit management and contracting services, while Greyhound is the only 
nationwide operator of scheduled intercity coaches. In the UK, First Bus is one 
of Britain's largest bus operators, transporting 1.6 million passengers a day, 
and we are one of the country's most experienced rail operators, carrying 
around 130 million passengers last year. Our vision is to provide solutions for 
an increasingly congested world... keeping people moving and communities 
prospering. 
 
Trenitalia is the passenger rail transportation company part of FS Italiane 
Group, a major industrial player with an increasing international presence and 
  operating revenues of over 5 billion euros. FS Group runs 8,000 trains a day, 
serving 600 million passengers and carrying 50 million tons of freight a year, 
over a network exceeding 16,700 kilometres. The group's objective is to develop 
a large-scale mobility and logistics project capable of contributing to the 
country's economic growth. The holding company, FS Italiane, controls companies 
active in specific core businesses - all of which, in terms of safety levels 
and technological standards, are European leaders. Trenitalia, the group's rail 
transportation company, is one of Europe's top railway operators, and manages 
passenger transport with its long haul connections, both on high speed 
(Frecciarossa) and conventional lines, as well as regional and metropolitan 
services. On February 13th 2017 Trenitalia completed the acquisition of the c2c 
franchise from National Express. Other companies belonging to the FS Italiane 
Group include RFI, Busitalia, Italferr, Mercitalia, Ferservizi, Italcertifer, 
Centostazioni, GS Rail, FS Sistemi Urbani, Netinera Deutschland, TX Logistik 
and Thello. 
 
Contacts at FirstGroup: 
 
Faisal Tabbah, Head of Investor Relations, [phone] 
 
Stuart Butchers, Group Head of Media, [phone] 
 
[e-mail] 
 
Contacts at Brunswick PR: 
 
Michael Harrison / Andrew Porter, Tel: [phone] 
 
Contacts at Trenitalia UK: 
 
Giovanni Sanfelice di Monteforte, Tancredi, 07775 858152 
 
 
 
END 
 

(END) Dow Jones Newswires

June 22, 2017 02:30 ET (06:30 GMT)