FirstGroup asks investors to put shares out for tender

This post was originally published on this site

Investors in FirstGroup who are being offered a £500 million windfall will be asked to tender the amount of their holdings that they want to sell in the passenger transport group, rather than the company using the more common share buyback or a special dividend.

After paying off commitments, reducing debt and topping up its pension funds from the proceeds of the £3 billion sale of most of its American interests, First has £500 million to distribute to shareholders. That is half the group’s market capitalisation, or about 41p a share.

First, which has activist shareholders on its register, has decided to launch a tender offer for the cash at a set — but as yet unannounced — price, which it said was “the