Unsolicited proposal

FirstGroup ‘evaluating’ £1.2bn I Squared approach

FirstGroup train, First Group rail services,
First Group said the approach is being evaluated

Transport company FirstGroup said it has received a series of unsolicited, conditional proposals from I Squared Capital Advisors in relation to a possible offer for the company.

The board together with its advisers, is currently evaluating the latest approach, received yesterday evening.

It provides for a cash component of 118p per share and a contingent right to up to a further 45.6p per share based on the outcome of the First Transit earnout and the net proceeds realised from the Greyhound legacy assets and liabilities.

The previous approaches were all unanimously rejected.

Aberdeen-headquartered FirstGroup is strongly advising shareholders to take no action in relation to the approach from I Squared.

It said a further announcement will be made if and when appropriate.

In accordance with the takeover code, I Squared is required to make a decision on whether or not to make an offer by not later than 5pm on 23 June.

Shares in the company closed 8.7% or 10.5p higher at 129.75p, indicating a level of doubt that an offer will be forthcoming at the proposed price.

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