8th May 2018 11:45
LONDON (Alliance News) - FTSE 250-listed FirstGroup PLC on Tuesday confirmed it has rejected takeover approaches from US private equity firm Apollo Global Management LLC.
Shares in the company were down 6.7% at 103.50 pence, the worst performer in the FTSE250 Index.
The company said in recent weeks it had received two preliminary and highly conditional indicative proposals from Apollo relating to a possible cash offer for the entire issued and to be issued share capital of FirstGroup. No financial details were disclosed.
"Having considered them in detail, the board of FirstGroup concluded that the proposals fundamentally undervalued the company. Accordingly, the board of FirstGroup unanimously rejected the proposals," the company said.
FirstGroup also said it continues to believe in the strong prospects for value creation available for its shareholders. The company is scheduled to publish its full year results on May 31, when it will also provide an update on future outlook.
Earlier on Tuesday, Apollo Management said that it does not intend to make an offer to acquire the company following an initial offer last month.
"Apollo confirms, on its own behalf and on behalf of the Apollo Funds, that neither it nor the Apollo Funds intends to make an offer to acquire FirstGroup," the private equity house said.
Last month, the London-listed transport operator rejected a preliminary and "highly conditional" 100% takeover offer from Apollo Management.
FirstGroup unanimously rejected the proposal saying it "fundamentally" undervalued the company and was opportunistic. It gave no financial details of the proposal.
FirstGroup operates the Great Western and South Western railway franchises in the UK, as well as the Greyhound bus service in the US.
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