National Express owner in talks over £282m takeover deal
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A British transport company is eyeing a potential takeover deal from its Spanish majority shareholder.
National Express parent firm Mobico has said it is in talks over a £282 million takeover deal from a Spanish transport company.
Birmingham-based Mobico, which also runs bus operations in Spain, Portugal and Morocco, said Autobuses de Leon (AdL) has made a proposal to buy the company for 46p per share.
Spain’s AdL is backed by CMC Group and investment firm Asterion Industrial Partners, who is Mobico’s largest shareholder, with a roughly 26% stake.
Mobico shares jumped by around 33% to 39.5p after the talks were confirmed on Wednesday morning.
The proposal represented a roughly 56% premium on the closing price of Mobico shares on Tuesday evening.
Mobico bosses said they have evaluated the approach with advisers and are “minded to recommend” the deal to shareholders, should AdL make a formal takeover offer.
“This announcement does not amount to an announcement of a firm intention to make an offer,” the company said in a statement.
“There can be no certainty that any firm offer for Mobico will be made. Mobico shareholders are advised to take no action in relation to the proposal.”
AdL has until November 18 to announce a firm offer.
It comes as takeover activity continues to ramp up this year, with interest from overseas strategic buyers and private equity.
Household names including easyJet and sugar giant Tate & Lyle have been taken off the London Stock Exchange by foreign investors.
Tate & Lyle shareholders voted overwhelmingly to wave through a £2.7 billion ($3.7 billion enterprise value) recommended all-cash takeover by US rival Ingredion on July 28.
And easyJet’s board unanimously agreed to a recommended £5.7 billion cash takeover offer from US private equity firm Apollo Global Management, which valued the airline at £7.15 per share.
Meanwhile, Mobico has trimmed down its operations through disposals in recent years.
It agreed a recent deal to sell its remaining UK regional bus operator to the West Midlands local authority, and completed a £457 million sale of its US school bus arm last year.
