May 24 (Reuters) - Coast Capital, FirstGroup’s biggest investor, on Monday again asked shareholders of the London-listed transport company to vote against its sale of two North American bus businesses, stepping up its campaign against the disposal.
The $4.6 billion sale of the businesses to Swedish private equity firm EQT Infrastructure has led to a shareholder rebellion due to concerns that it undervalues the assets. FirstGroup’s second-largest investor, Schroders, has also opposed the move.
“Unless the deal terms are materially improved upon, along with proposed use of proceeds, Coast Capital urges its fellow investors to vote against this destructive proposal,” the activist investor said in a statement.
FirstGroup did not immediately respond to a request for comment.
Reporting by Pushkala Aripaka in Bengaluru; Editing by Aditya Soni