Thursday 30 June 2022


< back | business | images | knowledge | library | rail unveiled | home


::: Test message -_— £ $ ‘’

Railhub Archive
2001-05-30 GOV-001


Acquisition of Connex South Central Limited by Govia Limited ('Govia')

keywords: click to search
Connex South Central
South Central

Phrases in [single square brackets] are hyperlinks in the original document

Phrases in [[double square brackets]] are editorial additions or corrections

Phrases in [[[triple square brackets]]] indicate embedded images or graphics in the original document. (These are not usually archived unless they contain significant additional information.)


Acquisition of Connex South Central Limited by Govia Limited ('Govia')

30 May 2001
source Govia
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

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

Martin Ballinger, Group Chief Executive of Go-Ahead,

'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 GOV-001


Not logged on

206 stories

12 documents

32 collections