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Iranian-born property baron Robert Tchenguiz, who holds a 4.7%
economic interest in FirstGroup, said
https://www.rns-pdf.londonstockexchange.com/rns/
7352T_1-2019-11-18.pdf he would seek a shareholder meeting as
soon as "practically" possible and urged FirstGroup Chair David
Martin to conduct a strategic review.
London-listed FirstGroup in response said its First Student
school bus service and First Transit service in North America
were "valuable assets and well positioned ... with profitable
growth."
"The board has been consistent and clear that the objective is
to realize value and therefore were a credible and deliverable
offer to be received for these or any other business in the
portfolio then, of course, the board would give that serious
consideration," it said.
First Student and First Transit accounted for 60% of the
company's operating profit in fiscal 2019.
Aberdeen-based FirstGroup said on Thursday it was in talks with
bidders for Greyhound and reported a bigger loss for the first
half amid a drop in demand in the United States, especially at
the southern border.
Following the results, Liberum analyst Gerald Khoo said he
expected scepticism to prevail as FirstGroup's management
continued to talk about progress in the 'portfolio
rationalisation' process without any actual disposals.
FirstGroup had put up Greyhound for sale earlier this year also,
partly due to growing competition from low-cost airlines.
Tchenguiz and his brother Vincent in 2014 had settled with
Britain's Serious Fraud Office after suing it over a botched
investigation in a case linked to the 2008 collapse of Iceland's
Kaupthing bank. (https://reut.rs/3798c8S )
(Reporting by Pushkala Aripaka and Yadarisa Shabong in Bengaluru;
Editing by Maju Samuel)
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