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 |
Forward-looking statements
Certain statements included or incorporated by reference within
this announcement may constitute 'forward-looking statements' with
respect to the business, strategy and plans of the Group and our
current goals, assumptions and expectations relating to our future
financial condition, performance and results. By their nature,
forward-looking statements involve known and unknown risks,
assumptions, uncertainties and other factors that cause actual
results, performance or achievements of the Group to be materially
different from any future results, performance or achievements
expressed or implied by such forward-looking statements. No
statement in this announcement should be construed as a profit
forecast for any period. Shareholders are cautioned not to place
undue reliance on the forward-looking statements. Except as
required by the UK Listing Rules and applicable law, the Group does
not undertake any obligation to update or change any
forward-looking statements to reflect events occurring after the
date of this announcement.
Notes
Legal Entity Identifier (LEI): 549300DEJZCPWA4HKM93. Classification
as per DTR 6 Annex 1R: 3.1.
FirstGroup plc (LSE: FGP.L) is a leading private sector provider
of public transport services. With £4.6 billion in revenue and more
than 30,000 employees, our UK divisions transported nearly
1.5m passengers a day in the last
financial year. First Bus is the second largest regional bus
operator in the UK, serving two-thirds of the UK’s 15 largest
conurbations with a fleet of c.4,900 buses. First Rail is the UK’s
largest rail operator, with many years of experience running
long-distance, commuter, regional and sleeper rail services. We
operate a fleet of c.3,800 rail vehicles through four management
fee-based train operating companies (Avanti, GWR, SWR, TPE) and two
open access routes (Hull Trains and Lumo). We create solutions that
reduce complexity, making travel smoother and life easier. Our
businesses are at the heart of our communities and the essential
services we provide are critical to delivering wider economic,
social and environmental goals. We are formally committed to
operating a zero-emission First Bus fleet by 2035 and to cease
purchasing further diesel buses after 2022; and First Rail will
help support the UK Government’s goal to remove all diesel-only
trains from service by 2040. In 2022 FirstGroup was named as one of
the world's cleanest 200 public companies for the third consecutive
year by sustainable business media group Corporate Knights in
partnership with US not-for-profit organisation, As You Sow. Visit
our website at www.firstgroupplc.com and follow us @firstgroupplc
on Twitter.