NatEx close on sale
NATIONAL EXPRESS is closing on a £765million sale to a consortium featuring its biggest shareholder and private equity group CVC.
An announcement on the deal is expected by today’s deadline, with the rail and transport group’s board backing the 500p-a-share offer from the consortium, led by 18 per cent shareholder, Spain’s Cosmen family, subject to due diligence being completed.
It is believed there are still some details to be thrashed out on how the deal will be financed. National Express shares rose 11dp to 475bp.
The consortium has struck a side deal to sell parts of the UK business to rival Stagecoach, which will snap up parts of National Express’s UK businesses.
Some National Express shareholders have suggested the company could approach Stagecoach and the Cosmens separately on the grounds that a directly negotiated break-up could yield a higher price. Such a move would remove CVC from the process.
National Express has £1billion of debt and was forced to hand back the East Coast rail franchise to the Government earlier this year after being caught out by the recession.