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FirstGroup CEO steps down after investor demands his resignation

Published 27/07/2021, 07:57
Updated 27/07/2021, 08:01
© Reuters.

LONDON (Reuters) - British transport company FirstGroup said Chief Executive Matthew Gregory plans to step down in September, a day after its biggest shareholder demanded he resign.

New York-based Coast, which owns a roughly 15% stake in FirstGroup, has been opposing the sale of the company's U.S.-based FirstStudent and FirstTransit businesses to Swedish group EQT, arguing the price was too low.

FirstGroup said on Tuesday that chairman David Martin would become interim executive chairman until a permanent replacement could be found.

FirstGroup also said it swung to a 224.3 million pound statutory operating profit in the year ended March 27 from a loss last year.

The group said it expects volumes to recover to between 80% to 90% of pre-pandemic levels during the first year after social distancing restrictions on public transport end.

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