FirstGroup to sell North American bus units to EQT Infrastructure funds – Sky

(Reuters) – British transport operator FirstGroup Plc is selling two North American-based bus units to funds managed by EQT Infrastructure for about $4.6 billion, Sky News reported on Thursday.

The deal, which Sky said would be announced on Friday, citing sources, exceeds earlier price expectations and will return millions of pounds to FirstGroup shareholders.

Aberdeen-headquartered FirstGroup and EQT both declined to comment.

FirstGroup announced a year ago it had begun the sale process for the FirstStudent and FirstTransit businesses, following pressure from major shareholder Coast Capital Management to focus on the U.K.

The two units reported annual revenues of $3.8 billion, accounting for 60% of group operating profit, in the full year prior to the sale announcement.

FirstGroup had also announced the sale of its Greyhound bus business in the United States and Canada in May 2019 but the process stalled amid the coronavirus pandemic and is ongoing.

FirstGroup operates four train contracts in Britain, including services to Bristol in the south west, and commuter services to the south of London, plus bus services in smaller UK cities and surrounding areas.

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