Check out our new Timeline feature to give you the latest updates on all the stocks you follow. Clickhere to set up your Timeline.

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

UPDATE 2-National Express in talks for all-share takeover of Stagecoach

Tue, 21st Sep 2021 07:33

* Stagecoach shareholders would own 25% in merged group

* Potential deal would value Stagecoach at 445 mln stg

* Stagecoach shares jump 20%, National Express up 7%

* Companies say no certainty a formal offer will be made
(Adds background, analyst comment, share price)

By Sarah Young

LONDON, Sept 21 (Reuters) - British transport company
National Express is in talks to acquire rival operator
Stagecoach Group in an all-share deal, offering scope
for cost savings and underpinning their recovery from COVID-19.

The tie-up, which would value Stagecoach at about 445
million pounds ($609 million), comes as government support to
help the companies get through the pandemic is due to expire.

National Express has bus and coach operations in Spain and
Britain, runs school buses in the United States, and has a
German rail contract.

Stagecoach, solely focused on Britain, is the country's
biggest bus and coach operator. The company was founded by Brian
Souter and his sister Ann Gloag in Perth in 1980, starting out
with just two buses bought with their father’s redundancy money.

They still own stakes in the company - Souter has about
14.55% and Gloag around 10.47%, based on Refinitiv data.

Under the terms of the potential takeover, Stagecoach
shareholders would receive 0.36 new National Express shares for
each Stagecoach share, giving them a 25% stake in the merged
group.

That represents an 18% premium on the closing price of
Stagecoach's shares on Monday.

Stagecoach's stock jumped 20% to 81 pence in early trading
on Tuesday. National Express rose 7% to 239 pence per share,
giving it a market value of 1.48 billion pounds.

During the pandemic, both Stagecoach and National Express
received government support to keep services running when
passenger numbers were down, but that funding will end in the
coming months.

Transport usage is starting to recover as workers return to
offices, but is still not near its pre-pandemic levels.

The companies said the tie-up would make pre-tax cost
savings of 35 million pounds per year through efficiencies such
as National Express utilising Stagecoach's depots for its coach
operations.

Stagecoach runs the megabus service, which like National
Express, operates coach services between British cities.

Citi analysts said the deal would be positive for the
transport sector. Rival UK operators FirstGroup and
Go-Ahead also rose around 3% on news of the potential
deal.

"We have argued for consolidation in the UK Public Transport
given the structural challenges facing the industry, i.e. the
pandemic impact on passenger volume and capex headwinds related
to the adoption of environmentally-friendly vehicles," Citi said
in a note.

The companies said that discussions and due diligence
remained ongoing and there could be no certainty of a formal
offer.

Should a deal go ahead, Stagecoach's chairman Ray O'Toole, a
former chief operating officer at National Express, would become
chair of the combined group, while National Express chief
executive Ignacio Garat would continue as CEO of the merged
entity.
($1 = 0.7310 pounds)
(Reporting by Sarah Young; Editing by Kate Holton, Michael
Holden and Jane Merriman)

More News
8 Dec 2021 11:49

Stagecoach half-year revenue and profit rise as merger talks continue

Stagecoach half-year revenue and profit rise as merger talks continue

Read more
8 Dec 2021 07:58

Stagecoach profit jumps but business softens

(Sharecast News) - Stagecoach's first-half profit rose sharply as the bus and coach operator's business revived but it said bad weather and changing Covid-19 guidance had caused business to soften.

Read more
3 Dec 2021 16:21

EXECUTIVE CHANGES: New chairs for Kenmare Resources and East Imperial

EXECUTIVE CHANGES: New chairs for Kenmare Resources and East Imperial

Read more
22 Nov 2021 09:25

LONDON BROKER RATINGS: Stifel cuts Auto Trader to Hold from Buy

LONDON BROKER RATINGS: Stifel cuts Auto Trader to Hold from Buy

Read more
16 Nov 2021 10:35

National Express and Stagecoach extend merger talks into December

National Express and Stagecoach extend merger talks into December

Read more
16 Nov 2021 08:01

National Express receives extension for Stagecoach takeover deadline

(Sharecast News) - Public transport operators Stagecoach and National Express said on Tuesday that the deadline for their potential merger had been extended to 14 December, with reciprocal due diligence now at an advanced stage as "constructive discussions" between the pair regarding the possible all-share combination continued.

Read more
18 Oct 2021 09:37

UPDATE 2-London's FTSE 100 falls on rate hike worries; Playtech soars

(For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window)* The Hut Group gains on giving up founder's 'golden share'* Playtech soars on $2.89 billion takeover deal* Top UK CFOs expect persistent sup...

Read more
18 Oct 2021 09:19

National Express and Stagecoach extend merger talks into November

National Express and Stagecoach extend merger talks into November

Read more
18 Oct 2021 08:09

LONDON BRIEFING: Playtech accepts GBP2 billion Australian takeover

LONDON BRIEFING: Playtech accepts GBP2 billion Australian takeover

Read more
18 Oct 2021 08:00

National Express given more time for Stagecoach bid

(Sharecast News) - UK bus and train operator National Express has been given until November 16 to make a bid for rival Stagecoach, the two companies said on Monday.

Read more
18 Oct 2021 07:15

UK's National Express given more time to bid for Stagecoach

LONDON, Oct 18 (Reuters) - British transport group National Express now has until Nov. 16 to make a firm offer for takeover target Stagecoach Group, both companies said on Monday after the regulator extended a deadline.The pair first announced tha...

Read more
14 Oct 2021 12:05

National Express quarterly revenue improves; Stagecoach talks ongoing

National Express quarterly revenue improves; Stagecoach talks ongoing

Read more
14 Oct 2021 11:06

SMALL-CAP WINNERS & LOSERS: Norcros ups outlook; Sabre profit warning

SMALL-CAP WINNERS & LOSERS: Norcros ups outlook; Sabre profit warning

Read more
14 Oct 2021 09:09

National Express moves closer to pre-pandemic revenue levels

(Sharecast News) - National Express reported a "sequential improvement" in performance in the third quarter on Thursday, with revenue up to 83% of the equivalent period ore-pandemic in 2019 on a constant currency basis, compared to 76% in in the second quarter.

Read more
13 Oct 2021 16:09

UK earnings, trading statements calendar - next 7 days

UK earnings, trading statements calendar - next 7 days

Read more

Track Your Investments

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.