REG-FirstGroup PLC: Statement re: Robert Tchenguiz statement

FirstgroupAnnouncement

18/11/2019 11:55

FIRSTGROUP PLC

STATEMENT RE: ROBERT TCHENGUIZ STATEMENT

FirstGroup plc (‘FirstGroup’ or ‘the Group’) notes the statement
issued today by Robert Tchenguiz regarding the Group’s half-yearly results
announcement of 14 November 2019.

The Board has been clear, including in the recent half-yearly results
announcement, that it is intent on realising value for all shareholders and is
focused on actively managing the entire portfolio by all appropriate means. 

The Board believes there is significant value to be unlocked across the
Group’s portfolio of leading public transportation businesses, and there are
limited synergies between the divisions, particularly between the UK and North
America. Realising greater value from the Group is the clear priority and this
is best achieved through a rationalisation of the current portfolio. The Group
has taken a number of important steps in relation to this strategy, as
outlined in the half-yearly results announcement.

The Chairman and Chief Executive’s comments at the front of the half-yearly
results announcement clearly reflect this position and are consistent.

David Martin, giving his view on the Group in his first Chairman’s statement
since being appointed on 15 August, noted that “We will continue to
actively evaluate all options across our entire portfolio to ensure we remain
focused on the most appropriate and deliverable means to realise shareholder
value.”   

Matthew Gregory, Chief Executive, stated that “We are intent on realising
value for shareholders and will actively manage our entire portfolio by all
appropriate means.”

We note Mr Tchenguiz’s comment concerning our North American assets and in
particular the sale of a competitor. First Student and First Transit are
valuable assets and well positioned in markets with profitable growth. The
Board has been consistent and clear that the objective is to realise value and
therefore were a credible and deliverable offer to be received for these or
any other business in the portfolio then, of course, the Board would give that
serious consideration.

We also note the comment made by Mr Tchenguiz about an announcement in
November 2018 regarding the pension deficit. This is an incorrect assertion
and no such announcement was made.

We also note the comment by Mr Tchenguiz regarding the potential to
requisition a further General Meeting. Whilst this is the prerogative of
shareholders, the Board believes it would be in the best interests of all
stakeholders for us to get on with the portfolio rationalisation and realise
value for shareholders without further distraction or delay.

Contacts at FirstGroup:
Faisal Tabbah, Head of Investor Relations
Stuart Butchers, Group Head of Media
Tel: +44 (0) 20 7725 3354

Contacts at Brunswick PR:
Andrew Porter / Simone Selzer, Tel: +44 (0) 20 7404 5959

Notes
Based on the most recent regulatory disclosures made to the company Robert
Tchenguiz has a direct shareholding of 0.02% of the issued share capital
together with additional economic interests from a spread bet (the terms of
which have not been disclosed).

FirstGroup plc (LSE: FGP.L) is a leading provider of transport services in the
UK and North America. With £7.1 billion in revenue and around 100,000
employees, we transported 2.2 billion passengers last year. Whether for
business, education, health, social or recreation – we get our customers
where they want to be, when they want to be there. We create solutions that
reduce complexity, making travel smoother and life easier.

We provide easy and convenient mobility, improving quality of life by
connecting people and communities.

Each of our five divisions is a leader in its field: In North America, First
Student is the largest provider of home-to-school student transportation with
a fleet of 43,000 yellow school buses, First Transit is one of the largest
providers of outsourced transit management and contracting services, while
Greyhound is the only nationwide operator of scheduled intercity coaches. In
the UK, First Bus is one of Britain's largest bus companies with 1.6 million
passengers a day, and First Rail is one of the country's largest and most
experienced rail operators, carrying 345 million passengers last year.

Visit our website at www.firstgroupplc.com and follow us @firstgroupplc on
Twitter.



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