National Express investors say 'yes' to £360m cash call
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 shareholders voted "yes" to the board's proposal for a £360m rights issue yesterday, ending weeks of uncertainty during which the company's biggest investor tried to drum up opposition to the plan.
The resolutions authorising the company to proceed were passed by around two-thirds of voters at an extraordinary meeting in London yesterday, and some 90 per cent of institutional shareholders in advance. But on the day – after a vocal campaign from Spain's Cosmen family, which owns almost 20 per cent of the stock – a third of shareholders still voted against.
The dispute is over how best to pull National Express out its difficulties. The beleaguered group is labouring under £1.1bn of debts and has had a torrid year after the loss of the East Coast Main Line rail franchise and the resignation of the chief executive, Richard Bowker, in July.
The company's board says the cash injection is needed to ensure that the group does not fail debt covenant tests it faces before the end of the year. But the Cosmens say there is "an absence of a well-defined strategy". The family claims the rights issue is too large, particularly at a time when there is no chief executive, and the company should be exploring other issues such as renegotiating its covenants.
Its chairman, John Devaney, yesterday stressed that the disagreements were in the past, despite the high profile opposition from Jorge Cosmen, who is his deputy on the board. Earlier in the week he described Mr Cosmen as "an asset" to the board. The Cosmens are also keen to emphasise their commitment. "We have always been, and remain, a committed, long-term shareholder in the company," the family said.
The new shares will be issued on Monday on a seven-for-three basis.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments