Stagecoach Group PLC - Perth, Scotland-based transport provider - National Express Group PLC confirms it will not raise the takeover offer for public transport peer Stagecoach that it made back in March. National Express says it believes its all-share combination with Stagecoach remains the better deal for Stagecoach shareholders, after being spurned for a cash offer from a fund managed by DWS Infrastructure. National Express notes its offer of a 0.36-times share exchange ratio currently values each Stagecoach share at 90 pence, which is below the DWS offer of 105p in cash. However, when including synergies, this rises to about 113p, a 7.6% premium. "National Express therefore considers the terms of its proposal to be full and fair and has decided that the terms will not be increased and are now final," it says.
Stagecoach in March walked away from the agreed all-share merger with larger UK peer National Express, opting instead for a GBP594.9 million cash offer from Pan-European Infrastructure III SCSp, an infrastructure fund managed by DWS Infrastructure. On Monday, the fund noted it has secured 30.4% acceptances for its takeover, which is unchanged from recent updates.
Current Stagecoach stock price: 104.40 pence, down 0.2% in London on Monday
12-month change: up 19%
Current National Express stock price: 246.20p, down 1.4%
12-month change: down 16%
By Tom Waite; thomaslwaite@alliancenews.com
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