For the benefit of DSBFirst customers DSB and FirstGroup have come to an agreement on the future funding of the joint venture and also the conclusion of DSBFirst Sweden in December 2011.
The agreement outlines that DSB and FirstGroup will contribute new capital to DSBFirst and bring about the controlled winding up of the activities of DSBFirst Sweden.
"DSB is very satisfied that it has come to an agreement with FirstGroup. Both DSB and FirstGroup will contribute financially and in practical terms to the controlled conclusion of DSBFirst Sweden in December 2011. DSBFirst will manage the change to a new operator in Sweden and ensure a reliable operation for its customers," says Kim Munch Lendal, Chief Legal Officer at DSB.
DSB and FirstGroup have agreed that each company will contribute DKK 35 million to re-establish equity in DSBFirst Sweden. As a part of the agreement FirstGroup will return to the Board of Directors of DSBFirst ApS, the joint holding company for the Öresund services.
"We are satisfied with the conclusion of our discussions with DSB on the restructuring of DSBFirst which helps in a responsible way to ensure the continued operation of train services for DSBFirst customers in both Sweden and Denmark" says Dave Gausby, Finance Director of FirstGroup's UK Rail division.
Fact sheet
- DSB and FirstGroup each contribute DKK 35 million to re-establish equity in DSBFirst Sweden.
- FirstGroup returns to the Board of Directors of DSBFirst ApS, which is the joint holding company for the Öresund services.
- The activities of DSBFirst Sweden will be wound up on 12 December 2011 in connection with the new timetable, when another operator takes over the Swedish part of the Öresund services. The guarantees provided to the Swedish transport authorities are depreciated by DKK 55 million as part of the capital contribution.
- FirstGroup has agreed a new Put Option with DSB, which provides FirstGroup with the option to exit DSBFirst ApS, following the final winding up of DSBFirst Sweden in 2012.