United KingdomFirstGroup s $4.6 bln N.American sale boosts shares
ReutersYadarisa Shabong
3 minutes read
FirstGroup (FGP.L) agreed to sell two North American bus businesses for $4.6 billion including debt to Swedish private equity firm EQT Infrastructure on Friday, to focus on its bus and rail operations in the UK.
Shares in the FTSE 250 firm, operating First Bus and four train contracts in Britain, surged as much 19% to hit a more than one year high before paring to trade 8% higherby 1057 GMT. We see the disposal as a clear positive, allowing the group to be simplified, with reduced leverage and legacy liabilities addressed, Liberum analysts said.
First published on Fri 23 Apr 2021 04.22 EDT
FirstGroup has sold the bulk of its North American transport business in a deal worth $4bn, as the transport group looks to focus on its UK bus and rail operations.
The Aberdeen-based FirstGroup has sold First Student, the biggest school-run operator in the US, with about 43,000 yellow buses, and First Transit, which provides outsourced public transport, to EQT Infrastructure.
Shares rose 10% after the deal was announced on Friday, making FirstGroup the top riser on the FTSE 250.
FirstGroup, the UK’s largest bus company and an operator of rail franchises including Avanti West Coast and Great Western Railway, is still seeking to sell Greyhound, its third North American business.
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