By Joe Hoppe
Coast Capital said Monday that it is calling for the resignation of FirstGroup PLC’s chief executive officer and two independent non-executive directors, after opposing the sale of the company’s U.S. operations.
The New York-based investor–and FirstGroup’s largest shareholder, with a 13.8% stake according to FactSet–called for the resignation of Chief Executive Matthew Gregory, and non-executive directors Julia Steyn and Warwick Brady.
Coast Capital said it has identified several other members to be appointed to the board instead, and that following the sale of First Student and First Transit, the board needs to establish a plan to enhance shareholder value.
A spokesperson for FirstGroup said it consistently engages with shareholders on a variety of topics, and that it has considered Coast Capital’s various outlines and initial ideas for the business over time.
FirstGroup said on April 23 that it had agreed to sell its U.S. operations to EQT Infrastructure for $4.6 billion. Investors in FirstGroup backed the sale with only 51.9% of votes in favor.
“The transaction, now approved by a majority of shareholders, enables the group to return GBP500 million of value to all shareholders, address its long-standing liabilities and make a substantial contribution to the pension scheme deficits,” a FirstGroup spokesperson said.
Shares in FirstGroup at 0904 GMT were down 0.9 pence, or 1.1% at 81.25 pence.
Write to Joe Hoppe at [email protected]