March 9 (Reuters) - UK bus and train operator FirstGroup said on Monday it would update the market about its plan for the U.S. businesses this week after a top investor demanded an extraordinary shareholder meeting to seek a demerger of the unit.
Earlier in the day, private equity firm Coast Capital Management demanded the meeting to seek a demerger of the First Student school bus service and First Transit transportation service from FirstGroup’s UK operations.
“The Board agrees that there is material value to be unlocked within the Group and is intent on delivering this in the best interests of all shareholders,” FirstGroup said in response to Coast Capital’s demand.
FirstGroup said it would give details about the progress of its strategic plans, including that of its North American contract businesses, on Wednesday, when it publishes its trading update.
In November, major shareholders Coast Capital and Robert Tchenguiz called for the company to sell its U.S. assets as part of a portfolio overhaul, which already includes the planned sale of the North American intercity bus service, Greyhound. (Reporting by Yadarisa Shabong in Bengaluru; Editing by Maju Samuel)
Our Standards: The Thomson Reuters Trust Principles.