StockMarketWire.com - Bus and train company First Group said it would return £500 million raised from recent asset sales to shareholders via a share buyback.

The buyback would take the form of a tender offer, for which shareholders could tender some or all of their shares at a price to be be announced at the time of launch.

If the full amount was not returned to shareholders, First Group said any remaining surplus cash would be returned via a special dividend, supplemented by on-market share buybacks.

The company had in July announced the completion of the sale of its First Student and First Transit businesses, while upping the amount it intended to return to shareholders to £500 million.

On Monday, First Group also said that its overall trading performance in the year to date had been in line with expectations.



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