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Public transport company FirstGroup said it had entered into an agreement to sell its First Student and First Transit businesses to EQT Infrastructure for £3.3 billion.
The company proposed to return about £365 million of the proceeds, about 30 pence per share, to shareholders during current calendar year.
There is potential for further distributions to shareholders in due course, following 'resolution of Greyhound, crystallisation of the First Transit earnout, and as UK end markets recover,' the company said.
About £2,190 million of initial net proceeds would to be used in addressing longstanding liabilities.
Sale completion is expected in calendar H2 2021.
The company also provided a trading update, saying it expects adjusted operating profit for the 2021 financial year to be ahead of management's previous expectations.