REGISTER: Hear how Fulcrum Metals (FMET) is board restructuring to support its strategic focus on Canada. Find out at the focusIR Feb Investor Webinar. Sign up here.

Less Ads, More Data, More Tools Register for FREE
Sponsored Content
Don't want ads? Click here
Sponsored Content
Don't want ads? Click here

Pin to quick picksNEX.L Share News (NEX)

  • There is currently no data for NEX

Watchlists are a member only feature

Login to your account

Timelines are a member only feature

Login to your account

Alerts are a premium feature

Login to your account

National Express in merger talks with Stagecoach

Tue, 21st Sep 2021 07:25

(Sharecast News) - Transport operator National Express confirmed on Tuesday that it is in talks with rival Stagecoach about a possible merger.
Under the terms of the potential combination, Stagecoach shareholders would receive 0.36 new National Express ordinary shares for each of their ordinary shares, resulting in them owning around 25% of the combined group.

"The board of National Express and Stagecoach believe that the potential combination would be a strategically compelling proposition with significant growth and cost synergies, as well as delivering strong value creation for both sets of shareholders," it said.

National Express said it has identified pre-tax cost synergies that are expected to reach a run-rate of at least £35m, with around 25% achieved by the end of the first year, 85% by the end of the second year and full run rate by the end of the third year following completion of the deal.

The company said discussions between the parties and reciprocal customary due diligence remain ongoing and there can be no certainty an offer will be made.

At 0818 BST, Stagecoach shares were up 18.2% at 80.45p while National Express was 7.3% higher at 239.18p.

Russ Mould, investment director at AJ Bell, said: "It's pitched as a merger, but it is clear which party will be in control. National Express is trying to buy Stagecoach, plain and simple. The benefits of parking the two businesses together include operating synergies, economies of scale and a bigger footprint for National Express in growth areas such as private coach hire and corporate transport.

"The starting gun on Stagecoach being a bona fide takeover target was fired in April when founders Sir Brian Souter and his sister Dame Ann Gloag sold just over 2% of the business. This was part of a plan to reduce the family ownership from 27.1% to 5% over the coming decade. In doing so, they have removed a major hurdle for any would-be suitor by declaring their intention to sell down the bulk of their holding.

"While the pair still have a significant stake, their willingness to start selling down should make it easier for National Express to convince them to accept its all-share offer.

"The competition authorities might have something to say about the two public transport operators coming together, but otherwise the deal looks fairly sensible.

"The fact that Stagecoach's board have called it a 'strategically compelling proposition' would also suggest talks are friendly."

Mould said a key factor to consider is whether someone else might fancy owning Stagecoach, such as an overseas transport operator. "It is not an easy feat to build up a large position in the UK public transport market and Stagecoach now has 8,400 buses and coaches.

"There may be some nervousness around using public transport at present due to the lingering pandemic, but long term it seems inevitable that buses will remain a vital part of the UK's transport network.

"Stagecoach has a key position in various parts of the country including places like Manchester where companies continue to expand, thereby pushing up employment and with it demand for commuter services."

More News
10 Mar 2022 08:48

TOP NEWS: National Express mulls options after Stagecoach rejection

(Alliance News) - National Express Group PLC on Thursday posted a narrowed annual loss and said it is "considering its options" after being spurned by Stagecoach Group PLC.

Read more
10 Mar 2022 07:54

LONDON MARKET PRE-OPEN: Balfour ups dividend; DS Smith trades in line

(Alliance News) - Stock prices in London were called to open lower on Thursday with the European Central Bank and US inflation figures taking centre stage while hope for peace in Ukraine emerges.

Read more
10 Mar 2022 07:07

National Express delivers improved FY performance as demand recovers

(Sharecast News) - Public transport operator National Express said on Thursday that full-year revenue, underlying earnings and pre-tax profits had all improved year-on-year in 2021 as demand for its services recovered "significantly" during the period.

Read more
9 Mar 2022 18:25

StageCoach takes different route after new suitor trumps National Express bid

March 9 (Reuters) - British bus and rail operator StageCoach on Wednesday backed a 594.9 million pound ($780 million) takeover offer from a European infrastructure fund that trumps a bid by rival National Express.

Read more
9 Mar 2022 17:08

LONDON MARKET CLOSE: Stocks rise amid hopes to settle Ukraine conflict

(Alliance News) - Stocks in London on Wednesday were attempting to claw back steep losses incurred since Russia's invasion of Ukraine as investors grew hopeful a diplomatic solution could be found.

Read more
9 Mar 2022 12:21

LONDON MARKET MIDDAY: Stocks attempt to rally after Russia oil ban

(Alliance News) - European stocks bounced back on Wednesday, surging into positive territory around midday after a difficult week so far, as investors go searching for bargains.

Read more
9 Mar 2022 11:06

SMALL-CAP WINNERS & LOSERS: Stagecoach ditches National Express bid

(Alliance News) - The following stocks are the leading risers and fallers among London Main Market small-caps on Wednesday.

Read more
9 Mar 2022 10:22

UPDATE: National Express notes rival Stagecoach takeover offer

(Alliance News) - National Express Group PLC on Wednesday noted the announcement by Stagecoach Group PLC that it has accepted a new cash takeover offer and no longer recommends the all-share merger previously agreed with National Express.

Read more
9 Mar 2022 09:05

LONDON MARKET OPEN: Stocks surge after more Russia sanctions

(Alliance News) - European stocks raced ahead at the open on Wednesday with the confirmation of a ban on Russian oil not sapping renewed investor optimism.

Read more
9 Mar 2022 09:00

TOP NEWS: Stagecoach changes horses, accepts new cash takeover offer

(Alliance News) - Stagecoach Group PLC has walked away from its all-share merger with larger UK peer National Express Group PLC, opting for a cash offer instead.

Read more
9 Mar 2022 08:23

LONDON BRIEFING: Stagecoach and National Express both up after jilting

(Alliance News) - Stagecoach has walked away from its all-share merger with larger UK peer National Express, opting for a cash offer instead.

Read more
9 Mar 2022 07:58

LONDON MARKET PRE-OPEN: Stagecoach disembarks from National Express

(Alliance News) - Stock prices in London were set to rise at the open on Wednesday but are likely to remain volatile after the US and UK announced Tuesday they are cutting off imports of Russian oil, in the most far-reaching action yet by Western allies to punish Moscow for invading Ukraine.

Read more
9 Mar 2022 07:56

National Express out of the running as Stagecoach agrees takeover by DWS

(Sharecast News) - Stagecoach said on Wednesday that it no longer plans to recommend a £470m takeover by National Express, after agreeing to be bought by an infrastructure fund managed and advised by DWS Infrastructure, in a £594.9m deal.

Read more
3 Mar 2022 16:01

UK earnings, trading statements calendar - next 7 days

Read more
15 Feb 2022 09:00

Zenobe signs deal with UK's National Express for 130 electric buses

LONDON, Feb 15 (Reuters) - Zenobe has signed an agreement to provide 130 electric buses to public transport group National Express that will see the UK startup provide everything from new vehicles to charging infrastructure, replacement batteries and spare parts.

Read more

Make Better Investment Decisions

Register for FREE

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.