First Group sells Wigan bus business to Stagecoach

First Group has announced the sale of its Wigan bus business to Stagecoach Group for £12m, as part of its strategy to reposition the UK bus division to focus on areas offering greater potential for growth.

As well the Wigan bus depot, Stagecoach will take over around 120 vehicles, 300 employees, and leased premises in Wigan bus station and its staff facilities.

Tim O'Toole, chief executive of First Group, said: "The sale of our Wigan bus business marks continued progress in our programme of selected asset and business disposals as we review the scope and scale of our UK Bus portfolio and reposition it for the longer term.

"With a clear focus we are working through a detailed plan to recover performance in our UK Bus division and equip the business to achieve sustainable growth and improved returns."

The announcement made little disturbance to First Group's share price, which increased by 1p to £192.70