FirstGroup PLC Statement re South Western rail franchise competition

 
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: [phone] 
 
 
 
END 
 

(END) Dow Jones Newswires

September 07, 2016 10:15 ET (14:15 GMT)