FirstGroup investors green light U.S. assets divestment to EQT (updated)

Banyan Gold

27/05/2021 15:06

(Adds detail, background)
    May 27 (Reuters) - A majority of FirstGroup  FGP.L 
shareholders on Thursday backed the firm's planned 3.3 billion
pound sale of its U.S. assets to EQT Infrastructure, in a blow
to activist investor Coast Capital which led a rebellion against
the deal.
    Top investor Coast launched a campaign a couple of weeks ago
to reject the agreement with Swedish private equity fund EQT,
arguing it undervalued the units, and demanded FirstGroup give
more of the proceeds to shareholders.
    FirstGroup, which aims to focus on its British bus and train
operations, was planning to use most of the sale proceeds to pay
down debt and contribute to its UK pension schemes, while giving
365 million pounds to shareholders.
    "I and the whole Board take very seriously our
responsibility to understand the different views and
perspectives of investors, and recognise that a number of
shareholders did not vote in favour of today's resolution," said
Chairman David Martin.    
    The public transport company plans to convene a general
meeting, if necessary, after the deal closes to seek investors'
approval over the proposed return of value to shareholders.
    The company, which expects the deal to close in the second
half of the year subject to certain conditions, said 61.3% of
votes cast at the shareholder meeting were in favour of the
proposed sale of FirstStudent and FirstTransit. It needed the
support of at least half of all votes cast to go through.
    

    

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