JV with Wackenhut Corrections Corporation
Date : 13 May 2002
Serco Group plc ("Serco") notes the announcement by WCC, its joint venture partner in Premier Custodial Group ("PCG"), that its parent company The Wackenhut Corporation has completed its merger with a wholly owned subsidiary of Group 4 Falck A/S (Milestone Acquisition Corporation). Serco also notes the decision by the Secretary of State for Trade and Industry on 9 May 2002 to refer the merger of Group 4 Falck A/S and The Wackenhut Corporation to the Competition Commission on the grounds of the competition concerns in the UK markets for the provision of transportation and custodial services.
Serco is currently considering its rights under the joint venture agreement with WCC with respect to the change of control of The Wackenhut Corporation. These rights include an option to acquire WCC's 50% interest in PCG, a right which Serco is currently discussing with WCC. Serco and WCC are continuing to work together as normal to maximise the operational performance of the joint venture. Serco will only exercise its option if it is beneficial to the Group and will update shareholders on this opportunity in due course, as appropriate.
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