FirstGroup PLC announced that its joint venture with MTR Corp UK Ltd has submitted a bid to the UK’s Department of Transport for the South Western rail franchise.
FirstGroup and MTR have also entered into a joint venture agreement for First MTR South Western Trains Ltd, which among other terms includes that, should either party default, the other has the right to acquire the defaulting shareholder’s shares for fair value.
The venture is 70% owned by FirstGroup through its subsidiary First Rail Holdings Ltd, whilst MTR holds the remaining 30%, having acquired its shares from FirstGroup for GBP30 million.
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