FirstGroup evaluating takeover proposal from I Squared, shares surge

FirstGroup surged on Thursday as it said it was evaluating a takeover offer from private equity firm I Squared, which owns Irish energy supplier Energia.

In a statement responding to a spike in the share price, the transport operator said it had received a series of unsolicited, conditional takeover proposals from I Squared.

"The 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 the First Transit earnout and the net proceeds realised from the Greyhound legacy assets and liabilities," it said.

FirstGroup said previous approaches were all unanimously rejected by the board.

Shareholders were "strongly advised" to take no action and FirstGroup said a further announcement will be made if and when appropriate.

At 0915 BST, the shares were up 7% at 127.70p.

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