FirstGroup's top shareholder demands CEO, 2 board members resign

Banyan Gold

26/07/2021 07:41

By Yadarisa Shabong
    July 26 (Reuters) - Coast Capital fund on Monday demanded
the resignation of FirstGroup's  FPG.L  chief executive and two
board members in the wake of a contentious asset sale, deepening
a rift between the British transport company and its biggest
shareholder.
    New York-based Coast Capital, which owns roughly 15% in
FirstGroup, has been opposing the sale of the company's
U.S.-based FirstStudent and FirstTransit businesses to Swedish
group EQT, arguing the price was too low.
    The deal closed on July 21 after 61.3% of investors at a
meeting in May voted in favour of the sale. Last week,
FirstGroup boosted shareholder returns by 37% to 500 million
pounds.
    Coast Capital founding partner James Rasteh told Reuters 
his firm presented alternate deal proposals to FirstGroup that
Coast believed would provide superior value to shareholders, but
that FirstGroup did not engage with them.
    A representative for FTSE 250-listed FirstGroup did not
immediately respond to a request for comment.
    Coast's proposals included a sale-and-leaseback transaction
and possible deals with a special acquisition vehicle, it said.
    "Given the board's decision to pursue a different path,
Coast Capital and fellow shareholders request that (FirstGroup
CEO Matthew) Gregory resign," Coast said in a statement seen by
Reuters. It also asked for the resignation of board members
Julia Steyn and Warwick Brady.

 (Reporting by Yadarisa Shabong in Bengaluru
Editing by Tomasz Janowski)
 ((Yadarisa.Shabong@thomsonreuters.com; Twitter: https://twitter.com/Yadarisa;
 +919742735150;))