National Express owner Mobico in talks over £282m takeover

Mobico, the Birmingham-based owner of National Express, is in talks over a possible £282m takeover by a Spanish transport company, and its directors say they would be minded to recommend the deal.

The group confirmed on Wednesday that it had received a possible cash proposal worth 46p a share from Autobuses de León. The offer is about 56 per cent above the price at which Mobico shares closed on Tuesday evening.

Shares in the company jumped by about a third in London after the announcement, to almost 40p.

A familiar name

Autobuses de León is jointly owned by CMC Group and a fund managed by Asterion Industrial Partners, a Madrid-based investor which manages about €8.3bn of assets and has experience of investing in transport businesses.

CMC Group is already Mobico's largest shareholder, with a stake of about 26 per cent. It has been an investor since 2005, when it sold the Spanish coach and bus operator Alsa to the then National Express Group. The deal would in effect see the family behind Alsa take control of the group that bought their company two decades ago.

Mobico said the proposal followed an initial approach and further negotiations. Its independent directors had considered it with their advisers and regarded the price as acceptable, subject to agreement on the full terms of a firm offer. The board has agreed to give Autobuses de León access to its books so that it can carry out checks before deciding whether to bid.

No certainty yet

"This announcement does not amount to an announcement of a firm intention to make an offer," the company said. "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."

Under UK takeover rules, Autobuses de León has until 5pm on 18 November to either announce a firm offer or walk away, unless the deadline is extended with the agreement of the Takeover Panel.

A slimmed-down group

Mobico has its headquarters in Birmingham and runs National Express coaches across Britain, as well as bus and coach operations in Spain, Portugal and Morocco through Alsa.

The group has shrunk in recent years through a series of sales. It sold its US school bus business last year for £457m, and more recently agreed to sell its remaining UK regional bus operation, the city's familiar National Express buses, to the combined authority as the region moves its buses into public control.

The company's shares had fallen sharply over several years, as it struggled with high debts and the cost of recovering from the pandemic. A takeover at 46p would value the group at a fraction of what it was worth a decade ago, when National Express was one of the best-known names on the London stock market.

For coach passengers, nothing is expected to change while talks continue.