FIRSTGROUP has revealed that it is considering the latest in a series of “unsolicited, conditional proposals” from a major private equity player that values the listed Scottish company at up to £1.23 billion.

Shares in the Aberdeen-based bus and rail giant surged this morning after the company said it was evaluating an approach from I Squared Capital Advisors, which was received yesterday evening.

The approach provides for a cash component 118p per share and a contingent right to up to a further 45.6p per share based on the outcome of the First Transit earn-out and the net proceeds realised from the Greyhound legacy assets and liabilities.

FirstGroup sold First Transit and First Student in a deal worth around £2.3 billion in April last year. It then sold Greyhound, the inter-city coach business, for £125 million, in October, effectively sealing its exit from the US.

FirstGroup said the previous approaches were unanimously rejected by the board.

The approaches to FirstGroup comes as fellow Scottish transport operator Stagecoach is poised to be sold. DWS, a German infrastructure investor, saw its £595 million bid for Stagecoach declared unconditional last week.

Shares in FirstGroup were up 9.5p, or 8%, at 129.2p, at 11am.

Based on FirstGroup's closing price of 119.4p per share, FirstGroup has a stock market value of £896m.

I Squared Capital teamed up with TDR Equity to acquire Aggreko last year.