New York-based investment company Apollo Global Management says it does not intend to proceed with a takeover bid for FirstGroup.
In recent weeks the board of FirstGroup received two preliminary and highly conditional indicative proposals from Apollo relating to a possible cash offer for the entire issued and to be issued ordinary share capital of FirstGroup. Having considered them in detail, the board of FirstGroup concluded that the proposals fundamentally undervalued the company. Accordingly, the board of FirstGroup unanimously rejected the proposals.
FirstGroup says that its board continues to believe in the strong prospects for shareholder value creation available to the company. FirstGroup will publish its full year results for the year to 31 March on 31 May and will update the market on the company’s outlook at that time.
FirstGroup made this announcement without the agreement or approval of Apollo, which was bound by Takeover Panel rules either to make a firm offer or formally withdraw its interest by 17.00 tomorrow.