Author Topic: Stagecoach Takeover  (Read 2515 times)

Offline TCD813

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Stagecoach Takeover
« on: September 21, 2021, 10:41:07 AM »
National Express in talks to buy rival Stagecoach

Quote from: Julia Kollewe, Guardian, Tue 21 Sep 2021 08.36 BST
Coach operator’s takeover would value UK’s biggest bus company at about £445m

National Express is in talks to buy Stagecoach, the UK’s largest bus operator, in an all-share deal to create a business with a fleet of 36,000 buses and coaches.

Stagecoach shareholders would receive 0.36 new National Express shares for each Stagecoach share they own, handing them 25% of the combined group.

That would value Stagecoach at about £445m, representing an 18% premium on the closing price of the Perth-based company’s shares on Monday.

The boards of both companies believe that the combined business would have “significant growth and cost synergies”. National Express could use Stagecoach’s depot network to run and maintain its coach operations. The deal would speed up the expansion of National Express’s growth businesses such as private hire coach, corporate shuttle and accessible transport.

The National Express chief executive, José Ignacio Garat, would become chief executive of the new group, while the Stagecoach chairman, Ray O’Toole, who was chief operating officer of National Express until 2010, would chair the business.

Stagecoach and National Express in merger talks

Quote from: Holly Williams, The Independent, Tue 21 Sep 2021
National Express would own around 75% of the combined group and Stagecoach shareholders around 25% under terms of the possible deal.

Under the terms of the possible all-share tie-up, National Express would own around 75% of the combined group and Stagecoach shareholders around 25%.

The deal would value Stagecoach at £445 million.

It comes after both firms have been hit hard by the pandemic, with passenger numbers slumping due to lockdowns, remote working and a switch away from public transport.

The groups have outlined plans to slash costs as part of the potential merger, with National Express saying it expects to find annual savings of at least £35 million, with around 25% by the end of the first year.

National Express has bus and coach networks across the UK and Spain while it also runs school bus services in America and a rail franchise in Germany.

But Stagecoach is UK focused and is Britain’s biggest bus and coach operator.

National Express said the deal would allow it to use Stagecoach’s depot network to run and maintain its coach operations, while also allowing it to expand its new growth initiatives – such as private coach hire, corporate shuttle and accessible transport – across Stagecoach’s UK operations.

The talks come after National Express rejected a £1.7 billion merger deal first mooted by Stagecoach in 2009.

This former attempt at a merger between the two would have seen Stagecoach own the majority of the combined group, with National Express left with up to 40%.

The two firms stressed that talks are ongoing and that there is no certainty a formal offer will be made.

National Express has until 5pm on October 19 to make a firm offer or walk away, under City Takeover Panel rules.

Full articles in hyperlinks above each quote.
« Last Edit: March 09, 2022, 09:05:10 AM by TCD813 »
TCD813? The reg of a Southdown Motor Services, Northern Counties bodied, Leyland Titan PD3/4 FH39/30F (popularly dubbed 'Queen Mary') from the late 50s.
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Offline TCD813

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Re: NatX in talks to buy Stagecoach
« Reply #2 on: September 21, 2021, 02:34:24 PM »
In terms of local bus operations I don’t think there’s much overlap between National Express and Stagecoach. The problem for the Competition Regulators is likely to be the issue of Megabus and National Express scheduled coaches.
TCD813? The reg of a Southdown Motor Services, Northern Counties bodied, Leyland Titan PD3/4 FH39/30F (popularly dubbed 'Queen Mary') from the late 50s.
There's all 'manor' of stuff on my Twitter A/c.

Offline SURREYMAN

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Re: NatX in talks to buy Stagecoach
« Reply #3 on: September 21, 2021, 03:39:18 PM »
If it goes ahead, then probably not good news for some of National Express coach contractors, press release refers to Stagecoach depot network.
If it is true that Johnsons of Henley in Arden have been acquired, then Warwickshire & greater Coventry (Coventry, Leamington, Rugby & Nuneaton + Stratford) are going to be of some interest to the CMA.

Offline Steves

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Re: NatX in talks to buy Stagecoach
« Reply #4 on: September 21, 2021, 06:17:58 PM »
Looks like Flixbus could have provided the way around competition concerns about long distance coaches where NX and Megabus compete. On buses, there is almost no overlap. NX sold Dundee where there would be competition issues. I can't find anything about NX buying Johnsons of Henley in Arden. If they did, they would have been primarily interested in the coaching business rather than the buses. I would have thought they would be prepared to sell the bus business (to?) to get the deal through. They would possibly be prepared to sell those parts of Stagecoach that currently compete in those areas too. It would be a small reduction in the size of Stagecoach.

Quite a turnaround from the situation in 2009 NX to be 75% of the group compared with 40% then.

Offline linkyyork

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Re: NatX in talks to buy Stagecoach
« Reply #5 on: September 21, 2021, 11:14:11 PM »

Offline TCD813

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Re: NatX in talks to buy Stagecoach
« Reply #6 on: September 30, 2021, 04:16:09 PM »
A report in Coach and Bus Week – Stagecoach and National Express in merger talks, 28/09/2021 CBW News Pick – has this informative paragraph.

Quote from: CBW News Pick
Any merger would have to go through the Government’s Competition and Markets Authority. National Express has already removed an obstacle to a potential merger by selling its Xplore Dundee business to McGill’s Buses in January of this year. The only other overlaps betweens the two transport groups are the megabus express coach services and some bus services in Coventry and Leamington Spa that are operated by Stagecoach in Warwickshire and National Express Coventry.
TCD813? The reg of a Southdown Motor Services, Northern Counties bodied, Leyland Titan PD3/4 FH39/30F (popularly dubbed 'Queen Mary') from the late 50s.
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Offline linkyyork

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Re: NatX in talks to buy Stagecoach
« Reply #7 on: October 18, 2021, 09:28:56 AM »

Offline TCD813

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Re: NatX in talks to buy Stagecoach
« Reply #8 on: October 26, 2021, 10:59:44 AM »
Meanwhile, across the Atlantic, FirstGroup sells Greyhound to FlixBus. Click the link to go to the new topic.
TCD813? The reg of a Southdown Motor Services, Northern Counties bodied, Leyland Titan PD3/4 FH39/30F (popularly dubbed 'Queen Mary') from the late 50s.
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Offline linkyyork

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Re: NatX in talks to buy Stagecoach
« Reply #9 on: November 16, 2021, 10:04:19 AM »

Offline linkyyork

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« Last Edit: December 14, 2021, 09:49:22 AM by linkyyork »

Offline Barry

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Re: NatX in talks to buy Stagecoach
« Reply #11 on: December 14, 2021, 09:32:03 PM »
I'm fascinated that Megabus was apparently worth so much!  I see why it's a great fit if you already own a Stagecoach, but on it's own it looks to be like a business with Problems.

Offline Steves

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Re: NatX in talks to buy Stagecoach
« Reply #12 on: December 15, 2021, 09:11:11 PM »
I agree with that with the possible exception of the stake in Scottish CityLink.  I had not realised until I read David's item today that more of Megabus was being operated by contractors which will make it easier for Megabus to operate independently of Stagecoach.

Offline linkyyork

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Re: NatX in talks to buy Stagecoach
« Reply #13 on: January 29, 2022, 12:20:38 AM »
The Competition and Markets Authority (CMA) is to investigate the proposed takeover of Stagecoach by National Express.

Offline TCD813

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Re: NatX in talks to buy Stagecoach
« Reply #14 on: January 29, 2022, 12:01:15 PM »
The Competition and Markets Authority (CMA) is to investigate the proposed takeover of Stagecoach by National Express.

A few links for those interested:
TCD813? The reg of a Southdown Motor Services, Northern Counties bodied, Leyland Titan PD3/4 FH39/30F (popularly dubbed 'Queen Mary') from the late 50s.
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Offline linkyyork

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Re: NatX in talks to buy Stagecoach
« Reply #15 on: March 09, 2022, 08:09:32 AM »
Stagecoach seem to have accepted another offer and pulled out of the deal with National Express.

https://otp.tools.investis.com/clients/uk/stagecoach/rns/regulatory-story.aspx?cid=273&newsid=1558586

Offline Barry

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Re: Stagecoach Takeover
« Reply #16 on: March 09, 2022, 11:46:04 AM »
A private equity fund based in Luxembourg?

Doesn't seem like good news :-(

Offline linkyyork

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Re: Stagecoach Takeover
« Reply #17 on: March 09, 2022, 01:45:36 PM »

Offline linkyyork

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Offline linkyyork

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Re: Stagecoach Takeover
« Reply #19 on: March 23, 2022, 08:00:34 AM »

Offline TCD813

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Re: Stagecoach Takeover
« Reply #20 on: April 03, 2022, 12:24:52 PM »
Interesting report in Route-One, recently.

DWS Infrastructure purchases 17% of Stagecoach share capital

Quote from: Route-One, 30/03/2022
DWS Infrastructure has progressed its bid to purchase Stagecoach with the acquisition of 16.99% of the Perth group’s issued ordinary share capital from Threadneedle Asset Management. DWS has paid 105p per share, in accordance with its final offer for Stagecoach.

In addition, DWS has received an irrevocable undertaking to accept its offer from Stagecoach co-founder Dame Ann Gloag in respect of her approximately 10.5% holding.

So that gives them circa 27% of the ordinary share capital.

But what's quoted later is of particular interest.
Quote from: Route-One, 30/03/2022
DWS claims that its bid will bring “greater certainty” for Stagecoach staff. It involves the retention of Chief Executive Martin Griffiths, Finance Director Ross Paterson and UK Managing Director Carla Stockton-Jones.
And...
Quote from: Route-One, 30/03/2022
DWS adds that it “has a strong conviction about the UK bus market opportunity on the back of the introduction of Enhanced Partnerships and potential franchising agreements."

[...] "a business review that DWS plans to undertake when and if the deal complete [...] will [...] encompass “expanding the geographic footprint of the business… on a region-by-region basis across the UK.”

[My emphasis]

Which begs the question, do the potential new owners of Stagecoach see franchising as more of an opportunity for the group than a threat?
TCD813? The reg of a Southdown Motor Services, Northern Counties bodied, Leyland Titan PD3/4 FH39/30F (popularly dubbed 'Queen Mary') from the late 50s.
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Offline linkyyork

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Re: Stagecoach Takeover
« Reply #21 on: April 04, 2022, 10:19:01 AM »
What Route One appear not to have mentioned is that National Express are buying Stagecoach shares.
The remarks from DWS could be showing concern at this.

Emails from Stagecoach showing various share transaction etc are sometimes up to twelve a day.

Offline linkyyork

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Re: Stagecoach Takeover
« Reply #22 on: April 13, 2022, 09:31:50 AM »
Latest update at https://www.stagecoachgroup.com/investors/news-and-events/regulatory-news.aspx shows
 " As at 4.00 p.m. on 12 April 2022, PEIF III Bidco may count 151,642,006 Stagecoach Shares (representing 27.50 per cent of the issued share capital of Stagecoach (excluding treasury shares)) towards satisfaction of the acceptance condition to its Offer.

Also " The Offer, which remains subject to the outstanding Conditions set out in the Offer Document, remains open until 1.00 p.m. (London time) on 21 May 2022 (the "Unconditional Date").

Offline linkyyork

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Re: Stagecoach Takeover
« Reply #23 on: April 20, 2022, 09:25:09 AM »
The latest is   
"As at 3.00 p.m. on 19 April 2022, PEIF III Bidco may count 151,852,235 Stagecoach Shares (representing approximately 27.53 per cent. of the issued share capital of Stagecoach (excluding treasury shares)) towards satisfaction of the acceptance condition to its Offer".

Not a lot of change from the previous one.

Full details at https://otp.tools.investis.com/clients/uk/stagecoach/rns/regulatory-story.aspx?cid=273&newsid=1575103

Offline linkyyork

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Re: Stagecoach Takeover
« Reply #24 on: April 27, 2022, 08:18:28 AM »
Latest is

PEIF III Bidco is pleased to announce that, as at 3.00 p.m. on 26 April 2022, valid acceptances of the Offer had been received in respect of 66,335,939 Stagecoach Shares, representing approximately 12.03 per cent. of the issued share capital of Stagecoach (excluding treasury shares).

Full detail at  https://otp.tools.investis.com/clients/uk/stagecoach/rns/regulatory-story.aspx?cid=273&newsid=1577292

Offline linkyyork

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Re: Stagecoach Takeover
« Reply #25 on: May 04, 2022, 08:49:53 AM »
Latest

Level of acceptances

PEIF III Bidco is pleased to announce that, as at 3.00 p.m. on 3 May 2022, valid acceptances of the Offer had been received in respect of 71,861,136 Stagecoach Shares, representing approximately 13.03 per cent. of the issued share capital of Stagecoach (excluding treasury shares).

Full details at https://otp.tools.investis.com/clients/uk/stagecoach/rns/regulatory-story.aspx?cid=273&newsid=1579598

Offline linkyyork

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Re: Stagecoach Takeover
« Reply #26 on: May 05, 2022, 08:07:06 AM »
The bid does not appear to be going too well.

INFRAMOBILITY UK BIDCO LIMITED LOWERS MINIMUM LEVEL OF ACCEPTANCES REQUIRED TO SATISFY ACCEPTANCE CONDITION FROM 75 PER CENT. TO 50 PER CENT. PLUS ONE SHARE, INCLUDING SHARES HELD BY INFRAMOBILITY UK BIDCO LIMITED

ACCEPTANCES MUST BE RECEIVED BY 1.00 P.M. (LONDON TIME) ON 21 MAY 2022

https://otp.tools.investis.com/clients/uk/stagecoach/rns/regulatory-story.aspx?cid=273&newsid=1580137

Offline linkyyork

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Re: Stagecoach Takeover
« Reply #27 on: May 21, 2022, 09:10:48 AM »
Emails on the takeover come thick and fast to the point if being overwhelmed.

This one deals with the position of National Express
https://otp.tools.investis.com/clients/uk/stagecoach/rns/regulatory-story.aspx?cid=273&newsid=1586240

This one deals with the offer for Stagecoach by Inframobility UK Bidco Limited being declared unconditional
https://www.stagecoachgroup.com/investors/news-and-events/regulatory-news.aspx