30th Sep 2021 10:28
(Alliance News) - FTSE 250-listed FirstGroup PLC on Thursday said its Greyhound bus unit has been awarded an initial funding grant of USD84.6 million.
Greyhound is the operator of scheduled intercity coaches in the US and has continued to provide these services throughout the pandemic. Greyhound remains non-core to FirstGroup and the company continues to pursue all exit options for the business with sale discussions ongoing.
The grant was secured from the first tranche of the US Department of the Treasury's Coronavirus Economic Relief for Transportation Services scheme. The Treasury has also advised that Greyhound will be eligible for a further award under the second tranche of funding, which is expected to be a fifth of the size of the first.
The Aberdeen, Scotland-based transport company said the scheme is intended to support a range of transportation service providers hurt by the coronavirus pandemic and is likely to result in an increase to service provision across the motor coach industry in the US.
FirstGroup shares were trading 0.9% lower in London on Thursday at 86.74 pence each.
By Evelina Grecenko; [email protected]
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