NBC sales now it's 43
Page 19
If you've noticed an error in this article please click here to report it so we can fix it.
• Luton & District Transport and Midland Fox have become the latest National Bus Company operating subsidiaries to be returned to the private sector, bringing the total sold off by NBC to 43.
At Luton & District some 270 busmen have chipped in up to £12,000 each to help buy out their company, with over 40% of the staff investing their own money in the buyout, which is being led by manager Graham Cumming.
A minimum stake of £1,000 was stipulated, but most of the 267 employee-shareholders have already invested considerably more than that. The workforce has contributed almost £600,000 towards the purchase price, with the balance coming from commercial backers. As with previous buyouts NBC is not prepared to reveal the total sale price of L&DT.
The only other subsidiary sale to attract such widespread worker participation was Provincial Bus company in Hampshire, where around 80% of the workforce and management have equal £750 share holdings in the jointlyadministered company.
The L&DT privatisation, however, is substantially different in that individual employees can take as large a shareholding as they want.
Luton & District provides local bus and minibus services throughout south Bedfordshire, north Hertfordshire and part of Buckinghamshire, as well as running scheduled coach services to London. The employee buyout was initiated by Graham Cumming late last year, and a buy-out committee was formed under the chairmanship of local TGWU branch chairman Chris Pitcher.
Under a joint bid approved by Public Transport Minister David Mitchell, Leicesterbased Midland Fox is being split into two. The company's management team will take control of six depots, 750 staff and 333 buses, minibuses and coaches, while Stevensons of Uttoxeter will take control of the Swadlincote depot, with its 70 staff and 44 vehicles.
Two senior directors of Stevensons, David Stevenson and managing director Julian Peddle, are to take a shareholding in Midland Fox. They will also join the board of the new holding company in a non-executive role.
Midland Fox's management team, who will take a majority shareholding in the company, are managing director Peter Lutman, finance director David Martin, commercial director Trevor Petty and engineering director Andrew Howard. All Midland Fox employees will be given a chance to buy shares in the company.
Midland Fox was created in 1981, when Midland Red was split into six local companies. It was originally called Midland Red (East) and changed its name to Midland Fox in 1984. The company now runs 177 minibuses under the 'Fox Cub' name, including over 100 in Leicester.
Stevensons has been running local buses in Uttoxeter and Burton-on-Trent for many years. Two years ago it amalgamated with the 40-bus fleet of East Staffordshire District Council. The acquisition of Midland Fox's Swadlincote operations gives the company a staff of 160 with 150 buses and coaches.
The Office of Fair Trading was asked to consider the share dealings associated with this privatisation because NBC was concerned that the link between Stevensons and Midland Fox might constitute unfair competition.