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Railhub Archive 2001-05-30 GOA-001 The Go-Ahead Group0
Acquisition of Connex South Central Limited by Govia Limited ('Govia')
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         Acquisition of Connex South Central Limited by Govia Limited ('Govia') _______________________________________________________________

 related documents
type Press release
GOVIA, Go-Ahead's 65% owned subsidiary, is pleased to announce that, on 29 May 2001, it exchanged contracts with Connex Transport UK Limited in respect of the acquisition by GOVIA of Connex South Central Limited ('Connex South Central'), together with the transfer to GOVIA of the franchise agreement to operate commuter trains on the South Central network. Completion is expected to take place before the end of July.
As compensation for its net assets (as at 30 December 2000 audited net assets were £12.8 million) and loss of revenue resulting from the early transfer of the franchise (the termination date of the current contract held by Connex South Central is in May 2003), GOVIA has agreed to pay on completion a sum of £30 million in cash, plus up to £2.5 million based on any increase in the net assets of Connex South Central from 31 December 2000 up to completion. A further amount of up to £10 million is payable, contingent upon passenger revenues earned by Connex South Central in respect of the year ended 5 January 2002 exceeding an agreed level.
In the 52 weeks ended 30 December 2000, Connex South Central recorded a profit before taxation of £9.0 million on turnover of £308 million.
The acquisition will further strengthen Go-Ahead's presence in UK railway services and will more than double the number of passenger journeys in Go-Ahead's rail division.
Both parties have agreed to work in full co-operation in order to ensure that the handover will be made as smoothly as possible in the best interests of customers and staff. GOVIA is committed to maintaining the recent trend of improving service performance and is negotiating the transfer of Connex South Central's rolling stock commitments, including early delivery of new trains later this year.
Negotiations continue to progress between GOVIA and the Strategic Rail Authority over the detailed terms of a 20 year franchise to operate the South Central network before June 2003, under the new brand, New Southern Railway.
Martin Ballinger, Group Chief Executive of Go-Ahead, said:
'The transfer of the Connex South Central franchise reinforces our position as a major operator in UK rail. Together with the acquisition of the British Midland ground handling businesses earlier this year, this further consolidates the group's position as one of the leading transport providers in the UK.'
For further information please contact:
The Go-Ahead Group plc Ian Butcher 0191 232 3123
Golin/Harris Ludgate Richard Hews 020 7324 8888
Railhub Archive ::: 2001-05-30 GOA-001
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