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The Markets
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Proactive UK has moved.
Coverage of London’s small caps continues on proactiveinvestors.com
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The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK
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The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK

Transport

Mobico lurches lower; brokers unimpressed bus sale plans

Shares in Mobico Group PLC (LSE:MCG) hit the central reservation, tumbling 42%, after it agreed a deal to sell its North America School Bus business in a deal that ascribes an enterprise value of up to $608 million.

CEO Ignacio Garat called the deal a 'significant milestone'. The analysts were far less effusive. Take Peel Hunt. It reckons investors should vote against the sale to "avoid a significant permanent destruction of shareholder value".

The broker said the price being paid is way too low, adding: "All of Mobico's businesses could be operated far better than they are, in our view, but we believe this will only be delivered with management change."

Panmure Liberum, meanwhile, was a little more diplomatic with its commentary, saying the "reduction in leverage is likely to be much less than hoped for".

The stock sank 24.79p to 34.31p.

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