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.
The company said it has reached an agreement on the terms of a recommended cash offer from Pan-European Infrastructure II and no longer intends to recommend the National Express deal announced in December. Under the terms of the offer, DWS will pay 105p in cash for each Stagecoach share.
The price represents a premium of around 54% to Stagecoach’s closing share price on 20 September, which was the last day before a possible offer from National Express was announced.
Stagecoach chief executive Martin Griffiths said: “Stagecoach is a leading multi-modal public transport operator and the proposed offer presents a major opportunity to maximise the significant growth potential ahead as governments seek to deliver economic recovery, level up communities, provide better health outcomes for citizens, and transition to a net zero future.
“We believe it will open a new and exciting chapter for Stagecoach, backed by a team who share our vision for a more sustainable future. We also believe it will deliver positive outcomes both now and in the long-term for all of our key stakeholders: the customers and the communities we serve, the people who deliver our high-quality transport services, our partners in national and local government, and the investors who have supported our continued success over many decades.”
