STAGECOACH has agreed to be taken over by a pan-European investment fund in a cash deal worth nearly £600 million, dashing hopes of National Express to merge with the Scottish bus giant.
Shares in Perth-based Stagecoach soared by nearly 40 per cent this morning after it emerged its board had accepted a cash offer of 105p per share from Inframobility UK Bidco, a company indirectly wholly owned by an infrastructure fund managed and advised by DWS Infrastructure.
The deal looks to have trumped a proposal from National Express to acquire Stagecoach in an all-share combination, which was being examined by the Competition watchdog. In a statement this morning, it was confirmed that the directors of Stagecoach no longer intend to recommend the National Express offer announced on December 14.
Under the terms of the DWS offer, the existing Stagecoach chief executive, Martin Griffiths, would remain in place, as would finance director Ross Paterson. DWS also said that Stagecoach’s overall headcount in frontline operational roles would be expected to remain the same, with the Stagecoach headquarter functions and related roles in Perth, London and Stockport being retained.
DWS Infrastructure is described as a patient long-term infrastructure investor worth with a proven track -record in unlocking the value of its portfolio companies. Transportation and essential infrastructure are a core focus for the firm, with investment in the UK including Corelink, Kelda (owner of Yorkshire Water) and Peel Ports.
Shares in Stagecoach were trading up 28.7p, or 37%, at 105.2p, at around 9.45am this morning,
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