Proposed NX takeover of Stagecoach

[BK63 YWP]

With the 19th October approaching, will the merger be accepted by both shareholders? If successful how long would the merger take to happen or will it have to go through the competition commission first?

[winston]

With the 19th October approaching, will the merger be accepted by both shareholders? If successful how long would the merger take to happen or will it have to go through the competition commission first?

There's nothing to accept by the 19th Oct, NX haven't even made a formal offer yet.

[mikestone]

To be fair, would there be a competition review on the bus operation? The only corridors NX and Stagecoach compete on are the Nuneaton - Coventry and Coventry - Warwick Uni - Leamington corridors. Stagecoach operate within all the major towns and villages in Warwickshire (except Coleshill/Water Orton).

Its not neccesarily the actual routes they compete on, but rather the fact that lack of potential competion allows the incumbent to raise prices or put in high bids for tenders.

[Tony]

This morning's staff notice

"This morning Stagecoach announced that it has been granted an extension by the Takeover Panel to the date by which we would need to make a firm offer. This is to allow more time for discussions and due diligence to continue. These extensions are very common in these types of negotiations."

[DJ]

On 21 September 2021, Stagecoach Group plc ("Stagecoach") and National Express Group PLC ("National Express") announced that they were in discussions in relation to a possible all-share combination (the "Potential Combination").

As announced on 18 October 2021, in accordance with Rule 2.6(a) of the Code, National Express is required, by not later than 5.00 p.m. (London time) on 16 November 2021, either to announce a firm intention to make an offer for Stagecoach in accordance with Rule 2.7 of the Code or to announce that it does not intend to make an offer for Stagecoach.

Reciprocal due diligence is now at an advanced stage and constructive discussions between Stagecoach and National Express are ongoing. The Boards of Stagecoach and National Express continue to believe that the Potential Combination would be a strategically compelling proposition delivering strong value creation for both sets of shareholders.

In light of the above, and in accordance with Rule 2.6(c) of the Code, the Board of Stagecoach has requested, and the Panel on Takeovers and Mergers (the "Takeover Panel") has consented to, an extension to the date by which National Express is required either to announce a firm intention to make an offer for Stagecoach in accordance with Rule 2.7 of the Code or to announce that it does not intend to make an offer, in which case the announcement will be treated as a statement to which Rule 2.8 of the Code applies. Such announcement must now be made by not later than 5.00 p.m. (London time) on 14 December 2021. This deadline can be extended by the Board of Stagecoach, with the consent of the Takeover Panel, in accordance with Rule 2.6(c) of the Code.

As noted above, discussions between the parties remain ongoing and there can be no certainty that an offer will be made.

A further announcement will be made as and when appropriate.

Source: https://otp.tools.investis.com/clients/uk/stagecoach/rns/regulatory-story.aspx?cid=273&newsid=1526319

TL;DR: Deadline extended to 14th December.

[pb2012]

Looking at the regulatory news it appears NX are buying shares in Stagecaoch?
If i have read it correctly.

[winston]

Looking at the regulatory news it appears NX are buying shares in Stagecaoch?
If i have read it correctly.

Not that I'm aware of.

Can you post a link to which regulatory news you're referring?

[pb2012]

https://www.nationalexpressgroup.com/investors/regulatory-news/
The same info appears on stagecoach investors news.
Assuming I’ve read it correctly?

[winston]

https://www.nationalexpressgroup.com/investors/regulatory-news/
The same info appears on stagecoach investors news.
Assuming I've read it correctly?

No, you're not reading it correctly, take the following as an example:

https://tools.eurolandir.com/tools/Pressreleases/GetPressRelease/?ID=4002862&lang=en-GB&companycode=uk-nex&v=2021

03 December 2021 15:20
Form 8.3 - National Express Group plc

1.         KEY INFORMATION
(a) Full name of discloser:     BlackRock, Inc.

It's the name of the discloser in section 1a that is doing the buying or selling, in this case BlackRock Inc

[midlandred2003]

So in plain language are they merging or not?

[pb2012]

So in plain language are they merging or not?

I honestly don't know, it's a case of wait and see as to whether they merge or not, I personally don't have that information.

[Tony]

We will have to wait for the next announcement in a couple of weeks time. All I know is talks are still ongoing

[winston]

So in plain language are they merging or not?

NX haven't decided whether or not to make a formal takeover offer for Stagecoach yet

[DJ]

We will have to wait for the next announcement in a couple of weeks time. All I know is talks are still ongoing

For anyone out of the loop, the deadline is the 14th December for NX to make a firm offer. It can be done sooner though, and the deadline can be extended again with the consent of both parties.

[Tony]

Next announcement now released

https://otp.investis.com/generic/regulatory-story.aspx?cid=273&newsid=1536057