National Express joins race for West Midlands Travel
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.National Express, the acquisitive coach operator and owner of East Midlands Airport, has made a takeover approach to West Midlands Travel, a bus company valued at more than £160m. West Midlands Travel, which runs more than 1,800 buses in the Midlands, has also had takeover approaches from four other suitors since the New Year, following delays in its flotation plans. Two of them are publicly-quoted transport companies.
West Midlands Travel was bought by the management and employees in 1991 from the West Midlands Passenger Transport Authority for £70m. The company has been considering coming to the stock market via a share flotation since last spring. Last summer it appointed financial advisers, BZW, to look to a flotation this spring. However the flotation plans have stalled, partly because of market conditions, and the advisers have now said the company must get its year-end financial results - due in March - out of the way first. It seems unlikely the flotation will go ahead before September.
"We appear to be on a very leisurely track at the moment," said Don Colston, the company's chairman, adding that the delays had "widened the window of opportunity for other companies to court us. The longer the wait, the more likely that somebody will come in."
Shares in the company are distributed among 5,000 employees and management. Its turnover is £150-£200m and its net indebtedness is about £50m.
The bus industry was deregulated in 1986 and since then a number of bus companies, including Stagecoach, Badgerline and the GRT Bus Group, have come to the stock market.
Subscribe to Independent Premium to bookmark this article
Want to bookmark your favourite articles and stories to read or reference later? Start your Independent Premium subscription today.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments