LONDON, UK: Inframobility UK Bidco Limited has reached an settlement to acquire the entire issued and to be issued ordinary share capital of UK bus operator, Stagecoach Group Plc for 105 pence in money for every share valuing Stagecoach’s existing issued and to be issued ordinary share capital at roughly £594.9 million on a fully diluted basis.
Inframobility UK Bidco Limited is not directly wholly owned by Pan-European Infrastructure III, SCSp (PEIF III), an infrastructure fund managed and suggested by DWS Infrastructure.
Consequently, the Stagecoach Directors have today confirmed that they no longer intend to recommend the National Express Offer introduced on 14 December 2021.
The money consideration payable by PEIF III Bidco to holders of Stagecoach Shares under the phrases of the Offer will be financed by fairness capital dedicated by PEIF III.
DWS Infrastructure is a affected person long-term infrastructure investor with a confirmed track record and extensive expertise in unlocking the worth of its portfolio companies utilizing its experience, community and ability to deploy additional capital in return enhancing investments.
Transportation and important infrastructure represent a core sector of focus for DWS Infrastructure, with a number of investments within the UK such as Corelink, Kelda (the proprietor of Yorkshire Water) and Peel Ports the place DWS Infrastructure has actively supported capital expenditure investments of >£1 billion throughout its ownership.
DWS Infrastructure has additionally invested in different main European transportation platforms, together with Hansea, a number one Belgian public bus operator, the place DWS Infrastructure is supporting the acceleration of its growth technique and has engaged with the related passenger transport authorities (“PTAs”) to agree a roadmap for the replacement of the company’s bus fleet with low or zero emission vehicles.
As a number one transportation services supplier within the UK, with a significant market share and a track record of strong monetary efficiency and predictable long-term money flows, the Stagecoach enterprise fits with DWS Infrastructure’s funding criteria.
DWS Infrastructure has a strong conviction about the UK bus market alternative on the again of the introduction of Enhanced Partnerships and potential Franchising preparations anticipated to drive will increase in bus patronage and enhancements within the standard of the service of the network.
DWS Infrastructure intends to focus on long-term sustainable worth creation through continued capital funding in Stagecoach’s asset base, supporting the administration team in delivering the enterprise plan.
The UK bus sector is at an inflection level because the nation looks to (i) decarbonise and transition to low or zero emission vehicles as a half of ambitious UK Government plans to attain net zero within the transport sector over the subsequent decade; and (ii) maximise the alternatives from the National Bus Strategy to ship on the joint enchancment plans of native transport authorities and operators to draw people away from private cars towards extra sustainable bus travel.
The transition to a low carbon footprint sector and the introduced enchancment of services would require substantial capital investments within the medium to long-term so as to meet the expectations of passengers and the UK Government. As a number one UK bus operator, Stagecoach will play a key role in driving such transition.
Public transport is critical to authorities efficiently achieving its ambitions round financial recovery, levelling up, higher well being outcomes for residents and delivering decarbonisation. Stagecoach is already in a strong place to play a central role in assembly these objectives and this will be enhanced by the alternatives provided by the Offer.
DWS Infrastructure’s expertise within the transportation sector mixed with its long-term funding horizon makes it well-placed to support the Stagecoach enterprise and supply advantages for all stakeholders.
Commenting on the Offer, Hamish Mackenzie, Head of Infrastructure at DWS said: “Stagecoach is a fantastic enterprise with an thrilling future as a central participant in a revitalised UK bus and coach market. As a long-term investor in important services with a strong track record within the UK and European transport sectors, DWS Infrastructure will again Stagecoach to quickly capitalise on the expansion alternatives presented by elevated private and non-private funding in UK bus and coach.
We are focused on supporting Stagecoach and its administration team to ship their technique for the profit of passengers, native communities and employees, in addition to serving to obtain ambitious plans for reaching Net Zero. We are happy the Board of Stagecoach has unanimously recommended our offer and we glance forward to working with the existing administration team to develop the enterprise sustainably for the long-term.”
Commenting on the Offer, Martin Griffiths, Chief Executive of Stagecoach said: “Stagecoach is a number one multi-modal public transport operator and the proposed offer presents a main alternative to maximise the numerous growth potential forward as governments search to ship financial recovery, level up communities, present higher well being outcomes for citizens, and transition to a net zero future.
We believe it will open a brand new and thrilling chapter for Stagecoach, backed by a team who share our imaginative and prescient for a extra sustainable future. We additionally believe it will ship positive outcomes each now and within the long-term for all of our key stakeholders: the customers and the communities we serve, the individuals who ship our high-quality transport services, our companions in nationwide and native government, and the investors who’ve supported our continued success over many decades.”