By Ian Walker
National Express Group PLC on Monday declared its merger with Stagecoach Group PLC final and said that it therefore won’t be increasing the terms of the deal.
The two public-transport operators agreed to merge in December in an-all share deal but Stagecoach then pulled out after agreeing to a new 594.9 million-pound ($729.6 million) takeover by Pan-European Infrastructure III, an infrastructure fund managed and advised by DWS Infrastructure.
National Express said Monday that it believed the terms of its deal with Stagecoach represented a “superior value creation opportunity when compared to the DWS offer.”
It said the DWS deal materially undervalues Stagecoach and the prospects of the sector which is in recovery following the coronavirus pandemic.
Under the deal that was agreed on Dec. 14, accepting Stagecoach shareholders would get 0.36 of a new National Express share for each share held and own around 25% of the combined company upon completion.
Under the DWS, deal-accepting Stagecoach shareholders will get 105 pence in cash for each share held.
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Credit: www.marketwatch.com /