Business
Update on All-Share Combination with Stagecoach
Update on All-Share Combination with Stagecoach.
About this update from Mobico Group Plc
[{"type":"text","content":"\n \n NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF THAT JURISDICTION.\n THE FOLLOWING ANNOUNCEMENT IS AN ADVERTISEMENT AND NOT A PROSPECTUS OR PROSPECTUS EQUIVALENT DOCUMENT AND INVESTORS SHOULD NOT MAKE ANY INVESTMENT DECISION IN RELATION TO THE NEW NATIONAL EXPRESS SHARES EXCEPT ON THE BASIS OF THE INFORMATION IN THE SCHEME DOCUMENT, THE PROSPECTUS AND THE CIRCULAR WHICH ARE PROPOSED TO BE PUBLISHED IN DUE COURSE.\n \n \n FOR IMMEDIATE RELEASE\n \n \n \n 16 May 2022\n \n \n \n \n \n \n Proposal for All-Share Combination with Stagecoach now Final*\n \n \n \n Further to its announcement on 17 March 2022, National Express now confirms that its proposal for the all-share Combination with Stagecoach at an exchange ratio of 0.36x is final*.\n \n \n Based on the latest National Express share price of 250 pence (as at close of business on 13 May 2022), the proposed exchange ratio represents a premium of 30%1 to its value as at close of business on 8 March 2022 (the last business day before the DWS Offer).\n \n \n \n The National Express Board continues to believe the Combination with Stagecoach would:\n \n \n \n ·\n Build on a leading and globally diversified public transport champion, unlocking an illustrative look-through value of up to approximately 174 pence per Stagecoach share2, a 66% premium to the DWS Offer\n \n \n ·\n Deliver significant synergies unique to the Combination which, when illustratively valued at an estimated pre-pandemic National Express trading multiple of 12.2x EV/EBIT3, represents 63 pence per National Express share and 23 pence per Stagecoach share4\n \n \n ·\n Provide Stagecoach shareholders with the opportunity to participate fully in the exciting future of the industry and, in particular, the compelling benefits of the all-share Combination with National Express\n \n \n ·\n Represent a superior value creation opportunity when compared to the DWS Offer, which the National Express Board believes materially undervalues Stagecoach and the compelling prospects of the sector amidst the ongoing recovery in public transport volumes towards pre-pandemic levels and the longer-term potential for modal shift\n \n \n The National Express Board notes tha...