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Statement re Greyhound property sale
Released : 20.09.2022
FIRSTGROUP PLC
GREYHOUND PROPERTY SALE
FirstGroup to sell almost all of its remaining legacy Greyhound property portfolio to Twenty Lake Holdings for c.$140m net proceeds
Following the sale, the Group's exit from residual Greyhound assets and liabilities will be substantially complete at an aggregate net value in excess of $160m since the start of the current financial year, ahead of expectations
Completion of the portfolio sale and receipt of proceeds expected in December 2022
FirstGroup plc ('FirstGroup' or the 'Group') today announces the sale by its subsidiary FirstGroup Services, Inc. of all but two of its remaining Greyhound US properties to Twenty Lake Management LLC, an affiliate of Twenty Lake Holdings LLC (the 'Buyer'), for net proceeds of c.$140m. The portfolio sale is subject to customary closing conditions for a transaction of this nature, with closing expected to occur and the proceeds received in cash in December 2022. In addition to the portfolio sale, the Group also completed the sale of a site in Denver for net $9m in August 2022, with some of the proceeds being applied in further de-risking of the residual Greyhound pensions liabilities.
In aggregate the book value of the Greyhound properties sold since the year end was c.$60m as at 26 March 2022, and as a result a profit on sale of c.$90m (net of property tax, selling and other costs) is expected to be booked in the current financial year.
Following these property sales, FirstGroup's residual exposure to legacy Greyhound assets comprises deferred consideration, residual real estate in Canada and two sites in the US (both under contract subject to due diligence), and funding awards from the Coronavirus Aid, Relief, and Economic Security ('CARES') Act and American Rescue Plan ('ARP') schemes relating to the period Greyhound was under the Group's ownership, altogether valued at c.$57m in total. This value is partially offset by legacy Greyhound liabilities (comprising residual insurance and pension liabilities which FirstGroup expects to de-risk in due course) and other provisions, together valued at c.$35m.
The Group will update on the application of the proceeds of the Greyhound property sale alongside publication of its half-yearly results in November.
Graham Sutherland, FirstGroup Chief Executive Officer, said:
"The sale of these residual Greyhound properties is another milestone in refocusing FirstGroup on our strong positions in bus and rail in the UK. We look forward to building on our robust platform for growth and shareholder value creation in future."
Contacts at FirstGroup:
Investor relations: Faisal Tabbah
Media: Stuart Butchers
corporate.comms@firstgroup.co.uk
Tel: +44 (0) 20 7725 3354 Contacts at Brunswick PR:
Andrew Porter / Simone Selzer
Tel: +44 (0) 20 7404 5959
And wouldn't the offer have been equal to about 160 per share? It's hard to see how this share will ever get to 160 under its own steam.
Absolutely should have, but all the useless management do is to keep going on about increasing 'Shareholder value'. What shareholder value?
Totally agree!
Probably thinking more of the fat salary they would be loosing!
Ridiculous decision from management.
https://www.thetimes.co.uk/article/avanti-trains-seeks-force-majeure-on-west-coast-contract-qcfv62h90
Are they taking the F**kin Michael.
Any reason for the share price drop over the last two days apart from Truss?
itll be the same as GWR......continued to deliver govt ideology under the cloak , the 'distance' of being a private matter for a private company. And FGP will benefit under that sleight of hand...
Well damofarl I would say you will see them pigs flying sooner then you think. Let’s see what happens in October when the government makes their decision pal
bvcxz70; the point that somehwat debunks your ascertion is that the operator has to gain Dft approval for reduction of promised services (on a planned basis).
davde; "...It is clear that the reduction in services in this area are as a consequence of staffing availability which would apply regardless of who manages these services currently."
I'm not sure that is the case. FGP have run various rail franchises for a number of years so can hardly protest a lack of understanding of the lead times for training guards/drivers. FGP has made either a conscious decision or are incompetent to not ensure a full complement of essential staff, and to ensure the goodwill of those existing staff by devaluing of their roles. If you take Avanti, the majority of staff were TUPE'd over from the previous franchisee, Virgin, who to memory had 2 very swiftly resolved strikes under their long tenure. Which suggests that some franchisees can navigate a middle road, if they have both the desire and the skillset.
As for FGP being stripped of franchisees - i think pigs will fly first. FGP's stance has been very much led by Govt dogma. Until that changes, FGP are happy to pick up guaranteed payments with zero risk but potential upside whilst the Govt can distance itself from it's agenda under the guise of it being a private company dispute.
In the middle of this grandstanding, it is the customers who are suffering. And FGP shareholders who will benefit from sustained predictable zero risk income.
Today TPE have reduced their service from Monday together with the already battered Avanti West Coast. Let’s see what the new Transport Sectary has got in store for First Group. In my mind they are really showing their total incompetence at running train franchises and one would think they actually don’t want train franchises anymore
The incentive plans were included in full in this years annual report published in June this year. It is worth noting the vesting and holding periods and conditions to be met before these awards are paid out. None of which was reported in the media, only the headline about the payout! Completely agree investment decisions should be made on information available, you just need to be sure you have all the information and not just selective views.
Yes good point you only get the dividend on shares you actually own.
The SAYE is a contract to buy at a pre set price ( 20% below market value like buying £5 notes for £4 ) at the end of a set time three years
That is what I meant by where or how you hold the stock.
Sorry I was not very clear.
https://www.mirror.co.uk/news/politics/train-firm-chief-awarded-1million-27786248
https://apple.news/AeMSg5A1iTOqi6UgQ_LNn-Q
https://www.theguardian.com/uk-news/2022/aug/19/avanti-west-coast-reward-failure-says-labour
I mean even Grant Shapps doesn’t even know what he’s agreed to lmfao, there’s only 1 train per hour to Manchester but he’s thinks there’s 4 an hours and swiftly changes the subject.
https://twitter.com/bbcbreakfast/status/1560534136129212416?s=24&t=F70tgeNYlJmHGglwjWwqOQ
With regards to people who think I don’t know much about this business or that I’m a kid ramper or deramper, all I’m saying is just read and look at what is out there, then form your own opinions.
With regards to opinion, obviously anyone who buys or sells shares based on what anyone says on a Internet forum which is open to abuse is just mad, so for me all I’m doing is showing you the information and letting you form your own decisions however as one person has already said, I’m allowed an opinion and based on all I’ve seen and factually seen it’s a bag of crap, so get out while you can
Funding extended until March 2023 for bus industry. £130 million for England only, hope for a bit of a recovery.
SAYE will only count if you bought them after the 3 year period
Long long time ago
I was a First group employee and invested in two schemes BAYG buy as you go the dividend was re invested in shares automatically
The other scheme SAYE save as you earn I am pretty sure I received a sividend by way of a check.
It also depends where or how you hold the shares
Paid into your bank account. I had 2 lots Paid into mine this morning and received a cheque for the rest which in future I will instruct to be paid into my bank account
How is the dividend paid out ? I am a personal investor through the sharesave schemes and not received anything. Is anyone else having the same issue
the service will be resumed in full.
It may well come to pass that the government strips FGP of its contract, however they need a reason to do so. It is clear that the reduction in services in this area are as a consequence of staffing availability which would apply regardless of who manages these services currently. The bottom line is when rail dispute settled
Dividend paid tomorrow 19th August
Oh Jaff everything you have have just said right back at you in the message you wrote LMFAO.
Anyways it may interest you all to read the following, all I was doing is simply warning everyone of what’s to come, get out while you can, ain’t going to get any better
https://www.greatermanchester-ca.gov.uk/news/statement-from-the-mayor-of-greater-manchester-following-avanti-talks/
I don't know either just trying to have confidence in B.O.D. ( board of DICTATORS
Time will tell, it was the contingent element of the offer I did not like itfelt wrong pretty vague and promoting an element of the value within the stock itself. We should receive that amount simply by holding.
Come on Mr Jim or can I call you Jaffa I considered reporting your post but know where you are coming from, Hey be the better man.
Totally in my opinion
What date are the dividends paid ?
I doubt they would have rejected the bid without the support of their major institutional shareholders. It is now up to the BoD to deliver on the contingent value with subsequent returns to shareholders. Just have to wait and see!