Stagecoach Group PLC
Sale of megabus Europe retail operations
29 June 2016
Stagecoach Group plc ("Stagecoach") is pleased to announce that yesterday it agreed the sale of the retail operations of its megabus Europe business to FlixMobility GmbH ("FlixBus"). Only those megabus.com retailing operations involving mainland Europe are part of the agreed sale.
The megabus Europe business comprises both retailing activities and coach operating activities. The retailing activities involve the design of inter-city coach services, including their timetabling, co-ordination and marketing, as well as the pricing and sale of journeys on those services. The coach operating activities encompass the day-to-day operation and staffing of the coach services. We have agreed the sale to FlixBus of the retailing part of that business. We will continue to operate a number of European inter-city coach services as a contractor to FlixBus and we look forward to building on our relationship with it.
The sale of the megabus Europe retail operations will complete on or around 1 July 2016. In addition, Stagecoach has agreed that it will dispose of a number of vehicles to FlixBus or its nominee at a future date.
The agreed amount of the consideration for the sale of the retail operations will be satisfied by the issue of a loan note from FlixBus to Stagecoach at completion. Stagecoach expects the loan note to be fully settled by the end of 2017. Payment of the loan note is not subject to any conditions or performance criteria which need to be fulfilled.
Stagecoach expects to report a gain on disposal in respect of the sale in its consolidated financial statements for the year ending 30 April 2017.
Existing customer bookings for megabus.com Europe journeys remain valid and these services are continuing to operate as normal. FlixBus is a leading retailer of inter-city coach travel in Europe - more information on it can be found, and travel can be booked, at www.flixbus.com.