National Express stands by bid for Scots firm

NATIONAL Express has chosen not to up the value of its all-share bid for Stagecoach, declaring that it represents a “superior value creation opportunity” compared to the rival offer from German infrastructure investor DWS.

The Birmingham-based bus giant had agreed an all-share merger worth £1.9 billion with Stagecoach in December that would give investors in the Scottish company around 25% in the combined company. Investors would receive 0.36 new National Express shares for each Stagecoach share.

But the approach was usurped by a cash offer worth 105p per share from DWS on March 9 that valued Stagecoach at £595 million.

In a statement to the stock market yesterday, National Express said its offer was final. Based on the latest National Express share price of 250p per share, at the close of business on Friday, May 13, it said the exchange ratio of 0.36 represents a premium of 30% to its value at the close of business on March 8 – the last business day before the DWS offer.

The National Express board added that the “proposed exchange ratio represents a current value of 90p per Stagecoach share (based on the latest National Express share price as at 13 May 2022) and an illustrative lookthrough value of approximately 113p per Stagecoach share… a 7% premium to the DWS offer.” The look-through value includes annual synergies at the combined group of at least £45 million.

DWS, which is owned by Deutsche Bank, saw its bid for Stagecoach accepted by the board of the Scottish company on March 9. DWS, which holds investments in Peel Ports, Corelink and

Kelda, owner of

Yorkshire Water, in the UK, tabled a cash offer of 105p per share, valuing Stagecoach at £595 million. It pledged to retain the Stagecoach office in Perth and the management team, led by chief executive Martin Griffiths and finance chief Ross Paterson.