National Express owner agrees to £308m Spanish buyout proposal
National Express’ parent company Mobico is being taken over by a Spanish buyer after agreeing to a £308million acquisition deal.
National Express is the latest British company to be taken private by a foreign buyer following announcement of the takeover deal on Friday morning.
Birmingham-based Mobico, formerly National Express Group, agreed to a 46p per share bid from Spanish firm Autobuses de Leon (AdL) through its Leita Mobility subsidiary.
The Birmingham based Mobico, under the new deal, will pay 46p per share to its shareholders as shares increased more than a tenth on Friday following the announcement.
The deal will value Mobico at around £2.3 billion with its significant debt pile taken into account.
Spain’s AdL is backed by investment firm Asterion Industrial Partners and CMC Group, which is Mobico’s largest shareholder with a roughly 26% stake.
Mobico has trimmed down its operations through disposals in recent years, including a recent deal to sell its remaining UK regional bus operator to the West Midlands local authority and the £457 million sale of its US school bus arm last year.
Phil White, non-executive chairman of Mobico, said: “We believe the offer represents a good outcome for Mobico’s stakeholders and provides shareholders with value and certainty.
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“Despite the recent strategic progress, the financial position of the business remains challenging, with the cash outflows associated with legacy liabilities constraining our capacity to reduce net debt.
“The proposed transaction is an opportunity for the business to benefit from a more sustainable capital structure and greater financial flexibility, which can support continued investment and growth.”
Mobico has roughly 30,000 employees and operates around 13,400 vehicles globally.
Felipe Cosmen Menéndez-Castañedo, vice-chairman of the CMC Group, said: “Our family has been a supportive, long-term shareholder of Mobico since 2005.
“We have great confidence in the company, its management team and its future. Together with Asterion, we look forward to supporting the next phase of growth and value creation.”
Jesús Olmos, chief executive of Asterion, said: “Mobico is an attractive transport infrastructure business, with contracted and concession-backed activities that are closely aligned with Asterion’s investment strategy.”
The National Express takeover is the latest casualty in a string of delistings from the London Stock Exchange.
Takeovers have ramped up this year, the vast majority of which come from overseas, as strategic buyers and private equity firms seek to broaden their portfolios.
Household names including EasyJet and Tate & Lyle are set to be taken off the London Stock Exchange at a time when it is failing to attract big-name IPOs.
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