Business
Proposed Tender Offer
Proposed Tender Offer.
About this update from Firstgroup Plc
[{"type":"text","content":"\n \n FIRSTGROUP PLC\nPROPOSED TENDER OFFER\n \n Proposed tender offer to return up to £500 million to shareholders at 105 pence per share\n Premium of 9.2 per cent. to the closing price on 26 October\n Tender Offer subject to shareholder approval; circular to be published today\n Irrevocable undertaking from Coast Capital Management to support the resolutions and tender its full holdings\n Tender proceeds expected to be despatched to Shareholders in December\n \n FirstGroup plc (“FirstGroup” or the “Company”) announces the proposed return of up to £500 million to its shareholders (the “Shareholders”) by way of a tender offer at 105 pence per share (the “Tender Offer”, which is summarised below).\n On 22 July 2021, FirstGroup completed the disposal of its First Student and First Transit businesses to EQT Infrastructure (the “Transaction”) for net disposal proceeds of $3,123 million (the “Net Disposal Proceeds”). On the same date, FirstGroup announced its intention to increase the proposed return of value to £500 million from £365 million previously (the “Return of Value”).\n Following consultation with Shareholders, the Board has decided that the appropriate first step is to conduct the Return of Value by way of the Tender Offer. Shareholders are therefore being invited to tender some or all of their Ordinary Shares for purchase on the terms and subject to the Conditions set out in the Circular to be published today.\n Shareholders may decide not to participate fully or partially in the Tender Offer for a number of reasons, including their view of the potential for the value of the Company to increase in the future. If the full £500 million is not returned to Shareholders through the Tender Offer, the Board intends to undertake a second phase of the Return of Value to return any remaining surplus cash following completion of the Tender Offer to Shareholders. If required, it is expected that this second phase would take place by way of a share buyback of up to approximately £50 million, with any meaningful surplus above this amount being returned by way of a special dividend (with accompanying consolidation and sub-division of the Company’s share capital (the “Share Consolidation”)).\n In addition to the Return of Value, the Board reiterates its commitment to keeping the balance sheet position of the Group under review and will c...