FirstGroup raises shareholder returns to 500 mln pounds from U.S. asset sale (updated)

Banyan Gold

22/07/2021 16:43

(Adds Coast Capital statement, shares, background)
    July 22 (Reuters) - British transport firm FirstGroup
 FGP.L  on Thursday increased its planned shareholder returns by
37% to 500 million pounds  ($687.60 million) after closing the
sale of its U.S. bus assets to private equity firm EQT
Infrastructure.
    FirstGroup had earlier promised to pay shareholders 365
million pounds on the 3.3 billion pound sale of FirstStudent and
FirstTransit. While a majority of shareholders backed the deal
in May, top two investors including Coast Capital had opposed
the sale and the size of the returns.
    "We are pleased that our continuing commitment and vigilance
has resulted in this positive first step since this transaction
was announced," Coast founding partner James Rasteh said.
    FirstGroup, which closed the sale on Wednesday evening,
plans to use the rest of the sale proceeds to pay down debt and
contribute to its UK pension schemes. 
    Shares in the company were up nearly 3% at 81.85 pence by
1718 GMT. They have gained about 10% so far this year, including
session gains, after falling around 40% last year.
    "Our mission is now to continue our work to realize greater
value for us and all FirstGroup shareholders in the critical
days ahead," Rasteh said.


($1 = 0.7272 pounds)

 (Reporting by Yadarisa Shabong in Bengaluru; editing by
Uttaresh.V and Shinjini Ganguli)
 ((Yadarisa.Shabong@thomsonreuters.com; Twitter: https://twitter.com/Yadarisa;
 +919742735150;))