Stagecoach sells to Macquarie

LONDON - Australia's Macquarie Bank said last night it was buying British bus and train operator Stagecoach Group's London bus operations for £263.6 million ($790 million).

Macquarie said Stagecoach London's "network of depots creates a unique franchise within its region, and the business benefits from strong cashflow visibility through contracted bus route concessions".

Stagecoach London's 1300 buses and 4300 staff run over 80 bus routes providing 300 million passenger journeys per year within and from London.

Stagecoach said it would make an estimated consolidated gain of £120 million on the disposal, adding it was to contribute £60 million to a new pension scheme for Stagecoach London members.

Chief executive Brian Souter said: "After assessing Macquarie's offer and the prospects for the London bus operations, we concluded that the disposal was in the best interests of our shareholders."

Stagecoach would look for further organic growth and bolt-on acquisitions for its remaining British bus business, where it has expanded in Merseyside, Yorkshire, Lincolnshire and Tayside over the past year.

Infratil bought Stagecoach's New Zealand bus services and Fullers ferries in November 2005 for $253 million.

* A Goldman Sachs-led consortium beat out Macquarie Bank in an auction for Associated British Ports after raising its cash offer to $8.4 billion.

However, Macquarie told ABP shareholders to take no action over the Goldman bid.

- REUTERS