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Bloomberg
FirstGroup Plc, under pressure from activist investors, is exploring options including a possible disposal of its North American school bus and transit divisions, extending a breakup strategy that already encompasses a planned sale of the iconic Greyhound brand.
The Aberdeen, Scotland-based group has appointed Rothschild to help advise on the sale of its First Bus and First Transit divisions, the company said in response to enquiries from Bloomberg. The business may fetch more than 2.6 billion pounds ($3.5 billion), analysts have said. Rothschild wasn’t available for immediate comment.
Activists Coast Capital LP and Robert Tchenguiz have been pressing for a breakup since FirstGroup rejected a takeover bid from Apollo Global Management last year, saying the current portfolio that includes UK train services doesn’t make sense. The transport company revealed last month it had swung to a first-half loss, further ramping up the pressure on Chief Executive Officer Matthew Gregory.
“Today’s announcement to formally explore all options to maximize value from our North American businesses reflects the resolute focus of the entire board on realizing value for all shareholders,†Gregory said in a statement on Monday.