Passenger Transport: June 3, 2022

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ISSUE 266 3 JUNE 2022

NEWS, VIEWS AND ANALYSIS FOR A SECTOR ON THE MOVE

FirstGroup evaluates £1.23bn unsolicited bid

With DWS Infrastructure having secured control of Stagecoach, another private equity firm has made a move for bus and rail operator FirstGroup FirstGroup is evaluating an unsolicited £1.23bn bid from US private equity group I Squared Capital, making it the latest UK transport group to become a takeover target. The Aberdeen-based bus and rail group revealed last week that it had received “a series of unsolicited, conditional proposals from I Squared Capital”. The group’s board together with its advisers, is currently evaluating the latest approach, received yesterday evening, which provides for a cash component of 118p per share and a contingent right to up to a further 45.6p per share based on the outcome of payouts to the

GO-AHEAD FINDS FRENCH PARTNER New partnership formed to bid for bus contracts

The Go-Ahead Group and Groupe Lacroix & Savac have entered a strategic partnership to explore opportunities to bid together for public transport contracts in France. The partners will target the market for bus services in and around Paris, where the city authorities have begun a process of putting routes out to tender as state-owned EPIC RATP loses its monopoly in 2025.

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company after the sale of the USbased First Transit business and the net proceeds from last year’s sale of Greyhound. FirstGroup withdrew from North America and to focus on the UK. The company was last year embroiled in a battle with New York-based activist investor Coast Capital, which forced out its chief executive, Matthew Gregory. Meanwhile, UK bus and coach operator Stagecoach announced last month that German private equity group DWS Infrastructure had secured control of the company. The company’s shares will be delisted on or around June 27. The group’s co-founder, Sir

Brian Souter, will step down from his role as a non-executive director when the shares are delisted. Stagecoach and FirstGroup are the two largest bus operators in Great Britain (outside London), holding 26% and 21% of that market respectively. If the bid for FirstGroup succeeds, private equity groups would contol almost half (47%) of that market. FirstGroup is also the UK’s largest train operator, with four franchises (Great Western Railway, South Western Railway, TransPennine Express and Avanti West Coast) and two open access operators (Hull Trains and Lumo).

NEWS

TfL announces major shake-up of bus routes

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Plans will affect around 78 routes

ENVIRONMENT

ALBUM seeks more time for bus transition

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Operators not ready for zero emission leap

COMMENT

Rail unions striking the wrong note

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Norman Baker on the threat of rail strikes

COMMENT Lacroix & Savac is an established operator in the Ile-de-France region with more than 80 years’ experience

Over-budget, overdue - I’m already over it

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Alex Warner takes a ride on Crossrail

BRTuk

Projects aim to boost buses

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West Midlands and Portsmouth in focus

01/06/2022 17:29


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