LONDON (dpa-AFX) - FirstGroup Plc (FGROY.PK), a British multi-national transport group, on Wednesday said it plans to return up to 500 million pounds to its shareholders through a tender offer at 105 pence per share.
David Martin, FirstGroup Executive Chairman commented: '.This marks the culmination of our portfolio rationalization strategy, as announced in December 2019, which has refocused the Group on its leading UK public transport businesses. In doing so, we have created a cash generative company with a well-capitalised balance sheet, a focused strategy and attractive growth prospects in our markets.'
The company further added, if the full 500 million pounds is not returned to the shareholders through the tender offer, then the board intends to undertake a second phase of the return of value to return any remaining surplus cash.
The latest move for the proposed tender offer follows the disposal of its First Student and First Transit businesses on July 22 to EQT Infrastructure for net disposal proceeds of $3.12 billion. On the same day, FirstGroup announced its intention to increase the proposed return of value to 500 million pounds from previously projected 365 million pounds.
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