LONDON (dpa-AFX) - The Board of National Express Group PLC (NEX.L) advised Stagecoach shareholders to take no action in relation to the DWS offer. The Board said the Express-Stagecoach combination represents a superior value creation opportunity when compared to the 105 pence per share DWS offer. The Board stated that it will remain disciplined in its assessment of options going forward.
The National Board encouraged all shareholders to look through the current period of market volatility and value both National Express and Stagecoach based on their respective fundamentals, strong future prospects and the significant benefits and synergies. The Board noted that a recovery of National Express' share price to a pre-pandemic level of 421 pence would imply: an illustrative look-through value per Stagecoach share of approximately 170 pence.
The National Board expects that the combined Group will be able to realise significant run-rate annual pre-tax cost synergies of at least 45 million pounds as a result of the combination. When illustratively valued at an estimated pre-pandemic National Express trading multiple of 12.2x, these synergies would unlock value of over 500 million pounds, the Board said.
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