Scottish Bus Group (Hansard, 2 December 1991)

§ Mr. Wilson
To ask the Secretary of State for Scotland if he is now in a position to state the selling price of each company within the Scottish Bus Group, and the principal conditions of sale.
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§ Lord James Douglas-Hamilton
I refer the hon. Member to the answer that I have given today about sale proceeds to my hon. Friend the Member for Dumfries (Sir H. Monro). As previously indicated, the principal conditions in each sale relate to property clawbacks, employee pensions and concessionary fare arrangements for employees, former employees and their families on the basis of the criteria set out in the disposal programme.

§ Sir Hector Monro
To ask the Secretary of State for Scotland if he will publish details of the proceeds obtained from the sales of the bus operating subsidiaries of the Scottish Bus Group, and the price obtained for each.

Scottish bus group privatisation sale proceeds

Subsidiary ¹Number of interests Number of bids Date of sale Purchaser Date of last balance sheet ²Latest audited profit/(loss) £'000 ³Pro-forma net assets £'000 ⁴Dividends/(capitalisa-tions) before sale £'000 ⁵Sale price £000

Lowland 19 4 17 August 1990 MEBO 31 December 1989 685 1,359 — 3,100

Scottish Citylink Coaches 7 4 30 August 1990 MEBO 30 June 1990 (2,455) (1,552) (1,500) 265

Midland 10 8 13 September 1990 GRT Holdings plc 31 December 1989 1,090 23,272 17,920 8,500

Eastern 11 4 27 September 1990 MEBO 22 April 1990 (12) 25,717 19,143 9,500

Kelvin Central⁶ 8 1 18 February 1991 MEBO 20 May 1990 (1,710) 6,981 (3,484) —

Northern 11 4 27 March 1991 Stagecoach (Holdings) Ltd. 12 August 1990 60 10,566 5,550 5,667

Strathtay 6 2 19 June 1991 Yorkshire Traction Co.Ltd. 31 December 1990 (92) 386 (2,120) 1,900

Fife 10 5 23 July 1991 Stagecoach (Holdings) Ltd. 31 December 1990 1,264 14,605 8,500 9,111

Highland 8 2 16 August 1991 Highland Bus and Coach Ltd. 31 December 1990 (377) 3,764 531 300

Western⁷ 12 2 14 October 1991 MEBO 31 December 1990 (2,016) 20,081 11,851 1,000

105,179 56,391 39,343

¹ The number of interests is the number of those registering an interest and receiving a copy of the information memorandum on the company concerned.

² Profits are stated before exceptional items. The figures in each case relate to the profit or loss in the period from the preceding 1 January to the date of the last balance sheet. In some cases this period is less than 12 months.

³ The pro forma net assets are the net assets at the last balance sheet date, adding back all dividends paid to the parent company since 1 January 1990 and adjusted for any subsequent property transfers and waivers of intra-group debt. Net asset values are on a modified historic cost basis that is, properties are included at current use valuation and all other assets and liabilities are accounted for on a historic cost basis.

⁴ Dividends declared before sale include all dividends paid to the parent company, stated after deduction of capitalisations, in both cases since 1 January 1990. Capitalisations are further subscription of share capital by the parent in the subsidiary or waiver of inter-company debt.

⁵ The sale price is the price paid for the shares of the relevant subsidiary including deferred consideration in the case of Western (see below).

⁶ The consideration for the share capital of Kelvin Central was a nominal £1. In addition, STG has retained the right in specified circumstances, such as a resale of the company, to participate in any future uplift in the value of the company, by way of an option to subscribe for 20 per cent. of its share capital. The right expires on 18 February 1998 or, if later, the last date of repayment of debt due by Kelvin Central to STG. This debt amounts to £l million due to be repaid in instalments by 18 February 2001.

⁷ The £1 million consideration for the share capital of Western includes £600,000 on deferred terms, the last payment being due on 14 October 1998. In addition, STG has retained the right in specified circumstances, such as a resale of the company, to participate in any future uplift in the value of the company, by way of an option to subscribe for 20 per cent. of its share capital. The right expires on 14 October 1996 or the date of the last payment of deferred consideration, if later. Immediately following the sale of Western to the MEBO, the company (by prior agreement with STG) sold assets, corresponding broadly to those previously owned by the former Clydeside Scottish subsidiary, to an employee buy-out company.

Scottish bus group privatisation sale proceeds
Subsidiary	¹Number of interests	Number of bids	Date of sale	Purchaser	Date of last balance sheet	²Latest audited profit/(loss) £'000	³Pro-forma net assets £'000	⁴Dividends/(capitalisa-tions) before sale £'000	⁵Sale price £000
Lowland	19	4	17 August 1990	MEBO	31 December 1989	685	1,359	—	3,100
Scottish Citylink Coaches	7	4	30 August 1990	MEBO	30 June 1990	(2,455)	(1,552)	(1,500)	265
Midland	10	8	13 September 1990	GRT Holdings plc	31 December 1989	1,090	23,272	17,920	8,500
Eastern	11	4	27 September 1990	MEBO	22 April 1990	(12)	25,717	19,143	9,500
Kelvin Central⁶	8	1	18 February 1991	MEBO	20 May 1990	(1,710)	6,981	(3,484)	—
Northern	11	4	27 March 1991	Stagecoach (Holdings) Ltd.	12 August 1990	60	10,566	5,550	5,667
Strathtay	6	2	19 June 1991	Yorkshire Traction Co.Ltd.	31 December 1990	(92)	386	(2,120)	1,900
Fife	10	5	23 July 1991	Stagecoach (Holdings) Ltd.	31 December 1990	1,264	14,605	8,500	9,111
Highland	8	2	16 August 1991	Highland Bus and Coach Ltd.	31 December 1990	(377)	3,764	531	300
Western⁷	12	2	14 October 1991	MEBO	31 December 1990	(2,016)	20,081	11,851	1,000
							105,179	56,391	39,343
¹ The number of interests is the number of those registering an interest and receiving a copy of the information memorandum on the company concerned.
² Profits are stated before exceptional items. The figures in each case relate to the profit or loss in the period from the preceding 1 January to the date of the last balance sheet. In some cases this period is less than 12 months.
³ The pro forma net assets are the net assets at the last balance sheet date, adding back all dividends paid to the parent company since 1 January 1990 and adjusted for any subsequent property transfers and waivers of intra-group debt. Net asset values are on a modified historic cost basis that is, properties are included at current use valuation and all other assets and liabilities are accounted for on a historic cost basis.
⁴ Dividends declared before sale include all dividends paid to the parent company, stated after deduction of capitalisations, in both cases since 1 January 1990. Capitalisations are further subscription of share capital by the parent in the subsidiary or waiver of inter-company debt.
⁵ The sale price is the price paid for the shares of the relevant subsidiary including deferred consideration in the case of Western (see below).
⁶ The consideration for the share capital of Kelvin Central was a nominal £1. In addition, STG has retained the right in specified circumstances, such as a resale of the company, to participate in any future uplift in the value of the company, by way of an option to subscribe for 20 per cent. of its share capital. The right expires on 18 February 1998 or, if later, the last date of repayment of debt due by Kelvin Central to STG. This debt amounts to £l million due to be repaid in instalments by 18 February 2001.
⁷ The £1 million consideration for the share capital of Western includes £600,000 on deferred terms, the last payment being due on 14 October 1998. In addition, STG has retained the right in specified circumstances, such as a resale of the company, to participate in any future uplift in the value of the company, by way of an option to subscribe for 20 per cent. of its share capital. The right expires on 14 October 1996 or the date of the last payment of deferred consideration, if later. Immediately following the sale of Western to the MEBO, the company (by prior agreement with STG) sold assets, corresponding broadly to those previously owned by the former Clydeside Scottish subsidiary, to an employee buy-out company.