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  "documentTitle": "FirstGroup plc (FGP)",
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  "authorName": "Sandell Asset Management",
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  "presentationDate": "2014-01-15 00:00:00",
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  "notes": "Includes a detailed 'STB Adjusted Yield Calculation' table to justify the yield premium argument.",
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      "text": "Sandell valuation implies yields of 6.0% - 6.8% - a premium to STB's unadjusted yield but a discount to STB's adjusted yield",
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      "text": "Source: STB filings and public disclosures, Sandell estimates, Bloomberg. Note: STB fiscal year ends June. (1) STB filings and public disclosures. Cash Flow before Maintenance Capex defined as EBITDA less interest expenses and cash taxes. Maintenance and growth capex as disclosed by STB. (2) Normalised maintenance capex assumes maintenance capex equals depreciation. (3) Assumes Normalised Distributable CF is fully distributed and as the recurring portion of dividends. (4) Bloomberg. (5) Adjusted dividend yield based on the normalised dividends divided by equity value. (6) Assumes all cash flow before growth paid out. (7) Sandell estimates. (8) Bloomberg. CY Dec-2014E.",
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      "text": "Yield at STB is artificially high due to its low maintenance capex; The cash flow at FirstGroup US is much more diversified and stable than STB; 10,800 vehicles, 225 contracts at STB; 50,000 buses, 1,300 contracts at First Student; 11,000 vehicles, 340+ contracts at First Transit; Some premium justified for FirstGroup US due to additional safety & diversification, offset by higher STB growth; Sandell valuation implies yields of 6.0% - 6.8% - a premium to STB's unadjusted yield but a discount to STB's adjusted yield",
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      "text": "The growth at FirstGroup US is much less; LFY STB growth: ~15%; LFY FirstGroup US growth: ~(1%); Discount to STB is reasonable; Sandell assumes a ~24%--29% discount to STB valuation",
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      "text": "Implied Dividend Yield: 6.8%",
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      "text": "Financial benefits: potential multiple expansion for FirstGroup US (cont'd)",
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