Apollo's take-private bid pre-emptively rejected by FirstGroup

The Aberdeen-based company is yet to release details of the prospective bid, but said in a statement to investors that the anticipated offer "fundamentally undervalues" the business, describing it as "opportunistic in nature".

Apollo is proposing to acquire FirstGroup, which owns US-based Greyhound and UK rail franchises such as Great Western and TransPennine Express, with funds drawn from its $24.6bn ninth buyout fund.

FirstGroup's shares rose by more than 8% by close of trading on Thursday 12 April following the announcement. At the time of publication, the company's shares were trading at 110 pence apiece, giving it a market cap of £1.34bn.

In its 2017 annual results, FirstGroup reported revenues of £5.7bn, up from £5.2bn in 2016 based on translating 2016 foreign currency accounts at 2017 rates. Adjusted operating profit grew by 12.7% from £300.7m to £339m in the same period and based on the same foreign currency considerations.

A spokesperson for Apollo declined to comment on the prospective bid.

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• Topics
• Buyouts
• UK / Ireland
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• Apollo Management
• Take Private