FirstGroup offer

[Breelander]

Anyone here still hold FirstGroup? I don't, it was one of my (very few) deliberate sales. But if you still hold, interesting times may be ahead. Released at 6:30pm today after the market closed...

The Board of FirstGroup plc (“FirstGroup” or the “Company”) notes the recent movement in FirstGroup share price and confirms that it has received a preliminary and highly conditional indicative proposal from Apollo Management IX L.P. (“Apollo”) relating to a possible cash offer for the entire issued and to be issued ordinary share capital of FirstGroup (the “Proposal”). The Board of FirstGroup has considered the Proposal in detail and believes that it fundamentally undervalues the Company and is opportunistic in nature. Accordingly, the Board of FirstGroup has unanimously rejected the Proposal.

https://www.investegate.co.uk/firstgrou ... 3009PE69C/

[UncleEbenezer]

Not I. Bought not as HYP but as a special situation when they had the rights issue; took profits not long after. Sitting on a capital loss in the sector through Stagecoach.

But interesting news - thanks for posting. I see FGP are well up from their bottom, and so is the whole sector. FGP, SGC, NEX, GOG all hit bottoms last month. Either they've run over a cat, or the sector has reached proper Value territory.

[Bouleversee]

One of the shares I had to sell at a loss from my husband's estate. I wish someone would make an offer for Stagecoach.

[Gengulphus]

Anyone here still hold FirstGroup?

I do, but only a tiny holding (value £80.83 at yesterday's close, i.e. before the announcement) in the Halifax ShareBuilder "1/8th scale model" of GDHYP. And since GDHYP is a tinker-only-for-admin-reasons HYP, the fact that I still own that holding should not be taken as a vote of confidence in the company for any date after when it was originally bought (April 2011) - and even that was as much (if not more) a vote of confidence by those who voted in the polls about that share purchase as by me personally.

As far as my main holdings are concerned, I've never chosen FirstGroup for my main HYP at all, so have never had a decision to make about selling it or continuing to hold it! I held Arriva in the sector years ago, purchasing originally in March 2005, but lost that holding when it was taken over in August 2010. I've been quite tempted by Go-Ahead Group at times, though it's never quite got to a purchase; FirstGroup has rarely (if ever - I don't actually recall an occasion) got on to my shortlist for a purchase.

Gengulphus

[kempiejon]

Anyone here still hold FirstGroup? I don't, it was one of my (very few) deliberate sales. But if you still hold, interesting times may be ahead. Released at 6:30pm today after the market closed...

Breelander I think I recall your musings over this one, something along the lines of the aims of the company no longer gel with my aims for my HYP wasn't it? I think I thought the same at the time but like you I make few deliberate sales and at that time I wasn't making any. These days I'll sometimes sell a bit for tax planning, ISAing big yielders and some gains harvesting and avoidance of foreigners so I still have them. I bought earlyish in my investing career so my unit buy was much smaller than today, with the losses my stake is comparatively a trivial amount so if they got taken over it would tidy up my portfolio by ridding me of a rump holding.

[idpickering]

U.K. Rail Operator FirstGroup Rejects Approach From Apollo

Buyout firm’s indicative offer too low, transport group says

➞
Company valued at $1.9 billion as shares extend recent gains

https://www.bloomberg.com/news/articles ... rom-apollo

[Breelander]

Breelander I think I recall your musings over this one, something along the lines of the aims of the company no longer gel with my aims for my HYP wasn't it?

Close - FirstGroup hit the buffers (pun intended) not through their own fault, but after the Government messed up the tender process and cancelled an awarded contract within weeks of its due date. The Board rethought their strategy and (IMHO) changed FGP into something that no longer matched the aims of HYP.

... I reluctantly concluded that the recovery plan the board has in mind was not one that include restoring a generous dividend policy. No doubt their multi-year plan is well conceived and on course to build a stronger company, it's just not one that fits the HYP criteria any more. As such FGP was put on watch at the beginning of the year to sell should the price improve. The Finals on 10th June were well received and provided such an opportunity. While the board were confident that the Improved financial performance in the year demonstrates our multi-year transformation programme is making progress I am not prepared to wait 'multi-years' for a dividend, preferring the more immediate returns offered by topping up Shell (RDSB) and GlaxoSmithKline (GSK) instead - (Bree's Q2)

https://web.archive.org/web/20161104222 ... 09137.aspx

[Paultry]

I bought 2000 in January 2013.

It was a HYP share for a short time. I've just left it and hoped it would eventually recover itself.

Just sit and see where it goes. Paul

[Gengulphus]

Apollo has announced this morning that it's not going to make an offer (this thread was always about a possible offer, not one Apollo had actually made):

https://www.investegate.co.uk/apollo-mg ... 00132647N/

Gengulphus

[Breelander]

Apollo has announced this morning that it's not going to make an offer...

...and FirstGroup have issued a response.

...the Proposals fundamentally undervalued the Company. Accordingly, the Board of FirstGroup unanimously rejected the Proposals...

https://www.investegate.co.uk/firstgrou ... 0218PCBB5/