FirstGroup evaluating takeover offer

FirstGroup is evaluating a takeover offer from a private equity firm.

The offer was unsolicited and came from I Squared Capital Advisors (UK) LLP, an independent global infrastructure investment manager.

The potential deal could be for as much as £1.2bn. The potential buyer is offering to pay 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 operator has received a series of unsolicited, conditional proposals from I Squared in relation to a possible offer to acquire the entire issued, and to be issued, share capital of the company. The previous approaches were all unanimously rejected by the Board.

Shares in FirstGroup rose dramatically since the potential bid was announced.

In a statement on FirstGroup’s investor relations site, the operator said: “FirstGroup shareholders are strongly advised to take no action in relation to the approach from I Squared.”

The current deadline for I Squared to announce a firm intention to make an offer for FirstGroup is 5pm on 23 June 2022. However, this deadline can be extended in line with regulations.