FirstGroup launches 75m share buyback

Transport operator FirstGroup has completed the sale of all but two of its remaining Greyhound US properties and will now launch a buyback of up to 75m shares to return some of the proceeds to investors.

The company announced in September that it was selling the properties to an affiliate of Twenty Lake for £122m.

It said on Friday: "The board has considered the use of the Greyhound property proceeds as part of the group’s balanced capital allocation policy, including its commitments to decarbonise the First Bus fleet, maintain its progressive dividend policy and to review targeted investment in strategically and financially accretive growth opportunities related to its UK regional bus operations.

"Accordingly, following the receipt of the Greyhound proceeds and in light of the group’s cash generative operations and strong net cash financial position, the group is launching a share buyback programme to purchase up to 75m of ordinary shares of 5p, in line with the group’s existing authority granted by shareholders, which will commence on 19 December."

The share buyback programme will end no later than 18 December 2023.