By using this site, you agree to the Privacy Policy and Terms & Conditions.
Accept
routeonerouteonerouteone
  • News
    • Show all
    • Awards & Events
    • Deliveries
    • Environment
    • Exhibitor News
    • Euro Bus Expo 2024
    • Features
    • Legal
    • Minibus and minicoach
    • Operators
    • Opinion
    • People
    • Suppliers
    • Vehicles
  • Vehicles
    • Find a Vehicle
    • ZEV Comparison Tool
    • Sell a Vehicle
    • Vehicle Seller Dashboard
  • Insights
  • Careers
  • Events
    • British Tourism & Travel Show
    • Euro Bus Expo
    • Innovation Challenge
    • Livery Competition
    • routeone Awards
  • Advertise
  • Contact
    • Share your news
    • Subscribe
    • Update Subscription Details
  • Latest Issue
  • SIGN UP
Search
© 2024 routeone News. All Rights Reserved.
Reading: Apollo abandons FirstGroup takeover aspirations
Share
Font ResizerAa
routeonerouteone
Font ResizerAa
Search
  • News
    • Show all
    • Awards & Events
    • Deliveries
    • Environment
    • Exhibitor News
    • Euro Bus Expo 2024
    • Features
    • Legal
    • Minibus and minicoach
    • Operators
    • Opinion
    • People
    • Suppliers
    • Vehicles
  • Vehicles
    • Find a Vehicle
    • ZEV Comparison Tool
    • Sell a Vehicle
    • Vehicle Seller Dashboard
  • Insights
  • Careers
  • Events
    • British Tourism & Travel Show
    • Euro Bus Expo
    • Innovation Challenge
    • Livery Competition
    • routeone Awards
  • Advertise
  • Contact
    • Share your news
    • Subscribe
    • Update Subscription Details
  • Latest Issue
  • SIGN UP
Follow US
© 2024 routeone News | Powered by Diversified Business Communications UK Ltd
- Advertisement -
-
routeone > Business deals > Apollo abandons FirstGroup takeover aspirations
Business deals

Apollo abandons FirstGroup takeover aspirations

routeone Team
routeone Team
Published: May 8, 2018
Share
SHARE

US-based private equity firm offers no reason for dropping its plans for takeover of transport giant

US equity fund Apollo has abandoned its planned takeover of FirstGroup

US private equity fund Apollo Global Management has walked away from plans to make a bid to take over FirstGroup.

On April 11, Apollo made what the Aberdeen-based transport giant describes as two “preliminary and highly conditional indicative proposals… relating to a possible cash offer for the entire issued and to be issued ordinary share capital.”

FirstGroup considered Apollo’s undisclosed proposals “opportunistic” and it believed that they “fundamentally undervalued” the company.

They were accordingly rejected unanimously by its board. British law meant that Apollo then had until 9 May to either make a firm offer for FirstGroup or walk away.

The equity fund has not offered any reasons why it dropped its plans. FirstGroup shares slumped by 10% following Tuesday’s announcement; they had climbed by an initial 7.4% when Apollo’s interest was first disclosed.

FirstGroup’s board says that it “continues to believe in the strong prospects for shareholder value creation available to the company.” The group has not paid a dividend since 2013 and it has lost 40% of its value over that period.

FirstGroup will publish its full year results for the year to 31 March at the end of this month and it will further update on the company’s outlook at that time.

At the time of Apollo’s initial approach, analysts suggested that FirstGroup is undervalued, with recent poor performance having caused the market to overlook its leading or near-leading positions in its main areas of activity. The group currently has a market value of £1.2bn.

However, one analyst added that were it not possible for an organic turnaround of FirstGroup to take place in full, investors would hope for “transactional alternatives to crystallise value, whether initiated by management or external parties.”

Others have added weight to the theory that the cash approach from Apollo could force FirstGroup to act, which may include a break-up of the company.

TAGGED:BusCoachDiversified CommunicationsMagazineMiniPlusrouteONE
Share This Article
Facebook LinkedIn Threads Email Copy Link
Previous Article Who will impress at this year’s routeone Awards?
Next Article Stop/Start fuel saver from Cummins low investment biggest savings
- Advertisement -

Latest News

Temsa HD12 and HD13 delivered to Cresta Coaches under Asset Alliance rental deal
Temsa pair join Cresta Coaches on Asset Alliance rental agreement
Deliveries
Go-Ahead London – Managing Director
Careers Jobs
andy burnham tfgm £15.6 billion (1) The funding announced by Chancellor Rachel Reeves today (4 June) has been allocated to several combined mayoral authorities to use on rail, tram, road and bus infrastructure. Transport for Greater Manchester revealed today that part of the £2.5 billion it will receive will go towards making the Bee Network fully battery-electric by 2030. An as-yet undecided portion of that will support a planned investment in 1,000 new zero-emission buses over that period, the mayoral authority said. That is part of plans to build the UK's "first fully integrated, zero-emission public transport system", with trams and trains also set to benefit. Liverpool City Region's already announced BRT system is among the projects to which its £1.6 billion will be allocated. Under those plans - due for realisation by 2028 - a high-speed network will be served by articulated buses which are modelled on the 'Glider' in Belfast. It is due to link Liverpool city centre with John Lennon Airport, and Liverpool FC and Everton FC's respective stadia along three routes. Although the model of bus has not been confirmed, a Van Hool Exqui.City on loan from Belfast was last year used as a demonstrator. That 18m vehicle can accommodate around 30% more passengers than a typical bus and has three sets of double doors. The funding will also go towards buses elsewhere in the city as the region heads towards franchising services by 2027. Liverpool Mayor Steve Rotheram with a 'Glider' which was on loan from Belfast last year - an example of the sort of bus which could serve the new BRT Bus services in the East Midlands region will be boosted by the funding, thanks to the £2 billion handed to it today by the government. Some of that allocation will be used for a rapid transit network on the Trent Arc between Nottingham and Derby. Between the two cities, the Freeport, Infinity Park Investment Zone and Ratcliffe-on-Soar will also benefit from the improved bus services. South Yorkshire Mayoral Combined Authority's newly announced commitment towards bus franchising has been boosted by £350 million in funding as part of that region's allocation. The funding for West Yorkshire will help build new bus stations in Bradford and Wakefield. Likewise, the Tees Valley Mayoral Authority will put its sum towards a new £15 million bus station in Middlesbrough. Transport Secretary Heidi Alexander says: "Today marks a watershed moment on our journey to improving transport across the North and Midlands – opening up access to jobs, growing the economy and driving up quality of life as we deliver our Plan for Change. "For too long, people in the North and Midlands have been locked out of the investment they deserve. With £15.6bn of government investment, we’re giving local leaders the means to drive cities, towns and communities forward, investing in Britain’s renewal so you and your family are better off."
TfGM’s all-electric bus plan boosted by new £15.6 billion package
News
Local Transport Minister opens First Bus electric depot in Hengrove
Local Transport Minister opens First Bus electric depot in Hengrove
Bus
- Advertisement -
-

routeone magazine is the indispensable resource for professional UK coach, bus and minibus operators. The home of vehicle sales and the latest bus and coach job vacancies, routeone connects professional PCV operators with complete and unrivalled news coverage.

  • Terms & Conditions
  • Privacy Policy
  • GDPR Policy
  • Sustainability
  • Advertise
  • Latest Issue
  • Share Your News
routeonerouteone
Follow US
© 2024 routeone News | Powered by Diversified Business Communications UK Ltd