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FirstGroup mulls sale of US bus business
16th Dec 2019 07:04
(Sharecast News) - Aberdeen-based bus and train operator FirstGroup on Monday said it was considering options on the future of its US business, including a sale.
The move comes after pressure from two major shareholders, Coast Capital and Robert Tchenguiz, who hold almost 15% between them, for the company to sell its US assets due to lack of synergy with FirstGroup's UK business.
The company has already started a review of its portfolio and put the North American intercity bus service Greyhound up for sale.
"We are actively addressing the cost base of First Bus through a comprehensive efficiency programme, the results of which will be substantially more evident in the second half of the year and beyond," FirstGroup said in a statement.
"Therefore, the board determined that greater value will be achieved by delivering this margin enhancement prior to any launch of a formal sale process."
The move comes after pressure from two major shareholders, Coast Capital and Robert Tchenguiz, who hold almost 15% between them, for the company to sell its US assets due to lack of synergy with FirstGroup's UK business.
The company has already started a review of its portfolio and put the North American intercity bus service Greyhound up for sale.
"We are actively addressing the cost base of First Bus through a comprehensive efficiency programme, the results of which will be substantially more evident in the second half of the year and beyond," FirstGroup said in a statement.
"Therefore, the board determined that greater value will be achieved by delivering this margin enhancement prior to any launch of a formal sale process."