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FirstGroup PLC on Tuesday noted that I Squared Capital Advisors UK LLP has confirmed that it will not make an offer for the Aberdeen, Scotland-based public transport provider.
In June, FirstGroup had rejected a possible takeover offer from I Squared at 118 pence per share in cash, plus 45.6p more contingent on the proceeds of FirstGroup's recent disposals of its First Transit and Greyhound businesses in the US.
Shares in FirstGroup were 11% lower at 114.20 pence on Tuesday afternoon in London.
FirstGroup stated that the firm cash component undervalues the company and the contingent component doesn't give shareholders enough certainty.
On Monday, I Squared made a final proposal of 135 pence per share, with further contingent value from the First Transit earnout, which FirstGroup also rejected.
‘FirstGroup is a cash generative, well capitalised business with a significantly de-risked balance sheet and strong positions in the UK bus and rail markets and, with new Chief Executive Officer Graham Sutherland in place, has a resilient and robust platform from which to develop and maximise both organic and inorganic opportunities that exist for growth in the core business,’ the company stated.
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