Transport service provider FirstGroup has finalised the sale of all but two of its US legacy greyhound property portfolio to Twenty Lake Holdings in a £122m deal.
FirstGroup announced the sale of its greyhound portfolio on 2 September, with assets and liabilities expected to fetch £140m in proceeds at the end of the next financial year.
Following the receipt of the proceeds, FirstGroup announced a £75m on-market ordinary share buyback of 5p that will begin on 19 December and conclude on 18 December 2023.
Last month, the Aberdeen-based firm purchased £15.7m of the 2024 6.875 per cent bonds at 100.67 per cent as part of a Bank of England bond auction, leaving £184.3m of the bonds outstanding.
Additionally, FirstGroup’s debt financing costs will decline by roughly £1m per year from this month onwards.
Grahan Sutherland, FirstGroup chief executive officer said: ” [We are ] in a strong financial position, with a balanced capital allocation policy and a clear strategy.”
He further noted that the transport service provider was “well-placed” to assume a key role in the decarbonisation of public transport.
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