FirstGroup PLC (LSE:FGP) said it is selling almost all of its remaining legacy Greyhound property portfolio to Twenty Lake Holdings for net proceeds of around US$140mln.
The sale will complete the group's exit from residual Greyhound assets and liabilities at an aggregate net value in excess of US$160mln since the start of the current financial year, ahead of expectations, the transport operator said in a statement.
In aggregate the book value of the Greyhound properties sold since the year end was US$60mln as at 26 March 2022, and as a result a profit on sale of US$90mln is expected to be booked in the current financial year.
"The sale of these residual Greyhound properties is another milestone in refocusing FirstGroup on our strong positions in bus and rail in the UK. We look forward to building on our robust platform for growth and shareholder value creation in future," said FirstGroup CEO Graham Sutherland.
The group said it will update on the application of the proceeds of the Greyhound property sale alongside its interim results statement in November.