REG-FirstGroup PLC: Statement re Greyhound property sale

FirstgroupAnnouncement

20/09/2022 07:15

FIRSTGROUP PLC
GREYHOUND PROPERTY SALE
* FirstGroup to sell almost all of its remaining legacy Greyhound property
portfolio to Twenty Lake Holdings for c.$140m net proceeds
* Following the sale, the Group's exit from residual Greyhound assets and
liabilities will be substantially complete at an aggregate net value in excess
of $160m since the start of the current financial year, ahead of expectations
* Completion of the portfolio sale and receipt of proceeds expected in
December 2022
FirstGroup plc ('FirstGroup' or the 'Group') today announces the sale by its
subsidiary FirstGroup Services, Inc. of all but two of its remaining Greyhound
US properties to Twenty Lake Management LLC, an affiliate of Twenty Lake
Holdings LLC (the 'Buyer'), for net proceeds of c.$140m. The portfolio sale is
subject to customary closing conditions for a transaction of this nature, with
closing expected to occur and the proceeds received in cash in December 2022.
In addition to the portfolio sale, the Group also completed the sale of a site
in Denver for net $9m in August 2022, with some of the proceeds being applied
in further de-risking of the residual Greyhound pensions liabilities.

In aggregate the book value of the Greyhound properties sold since the year
end was c.$60m as at 26 March 2022, and as a result a profit on sale of c.$90m
(net of property tax, selling and other costs) is expected to be booked in the
current financial year.

Following these property sales, FirstGroup's residual exposure to legacy
Greyhound assets comprises deferred consideration, residual real estate in
Canada and two sites in the US (both under contract subject to due diligence),
and funding awards from the Coronavirus Aid, Relief, and Economic Security
('CARES') Act and American Rescue Plan ('ARP') schemes relating to the period
Greyhound was under the Group's ownership, altogether valued at c.$57m in
total. This value is partially offset by legacy Greyhound liabilities
(comprising residual insurance and pension liabilities which FirstGroup
expects to de-risk in due course) and other provisions, together valued at
c.$35m.

The Group will update on the application of the proceeds of the Greyhound
property sale alongside publication of its half-yearly results in November.

Graham Sutherland, FirstGroup Chief Executive Officer, said:
"The sale of these residual Greyhound properties is another milestone in
refocusing FirstGroup on our strong positions in bus and rail in the UK. We
look forward to building on our robust platform for growth and shareholder
value creation in future."

 Contacts at FirstGroup: Investor relations: Faisal Tabbah Media: Stuart Butchers corporate.comms@firstgroup.co.uk Tel: +44 (0) 20 7725 3354  Contacts at Brunswick PR: Andrew Porter / Simone Selzer Tel: +44 (0) 20 7404 5959  

Forward-looking statements
Certain statements included or incorporated by reference within this
announcement may constitute 'forward-looking statements' with respect to the
business, strategy and plans of the Group and our current goals, assumptions
and expectations relating to our future financial condition, performance and
results. By their nature, forward-looking statements involve known and unknown
risks, assumptions, uncertainties and other factors that cause actual results,
performance or achievements of the Group to be materially different from any
future results, performance or achievements expressed or implied by such
forward-looking statements. No statement in this announcement should be
construed as a profit forecast for any period. Shareholders are cautioned not
to place undue reliance on the forward-looking statements. Except as required
by the UK Listing Rules and applicable law, the Group does not undertake any
obligation to update or change any forward-looking statements to reflect
events occurring after the date of this announcement.

Notes
Legal Entity Identifier (LEI): 549300DEJZCPWA4HKM93. Classification as per DTR
6 Annex 1R: 3.1.

FirstGroup plc (LSE: FGP.L) is a leading private sector provider of public
transport services. With £4.6 billion in revenue and more than 30,000
employees, our UK divisions transported nearly 1.5m passengers a day in the
last financial year. First Bus is the second largest regional bus operator in
the UK, serving two-thirds of the UK’s 15 largest conurbations with a fleet
of c.4,900 buses. First Rail is the UK’s largest rail operator, with many
years of experience running long-distance, commuter, regional and sleeper rail
services. We operate a fleet of c.3,800 rail vehicles through four management
fee-based train operating companies (Avanti, GWR, SWR, TPE) and two open
access routes (Hull Trains and Lumo). We create solutions that reduce
complexity, making travel smoother and life easier. Our businesses are at the
heart of our communities and the essential services we provide are critical to
delivering wider economic, social and environmental goals. We are formally
committed to operating a zero-emission First Bus fleet by 2035 and to cease
purchasing further diesel buses after 2022; and First Rail will help support
the UK Government’s goal to remove all diesel-only trains from service by
2040. In 2022 FirstGroup was named as one of the world's cleanest 200 public
companies for the third consecutive year by sustainable business media group
Corporate Knights in partnership with US not-for-profit organisation, As You
Sow. Visit our website at www.firstgroupplc.com and follow us @firstgroupplc
on Twitter.



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