Stagecoach Sells Majority of Road King Infrastructure Shareholding
19 Jan 2004
Stagecoach Group plc is pleased to announce that its subsidiary, Stagecoach Asia Limited, has sold the majority of its 30.6% shareholding in Road King Infrastructure Ltd to Shenzhen Investment Limited.
Stagecoach Asia Ltd has sold a 25% shareholding in Road King Infrastructure at HK$5.00 per share.
Total proceeds from the sale before transaction costs are approximately HK$730million (approximately £52million) in cash, which will initially be used to reduce the Group’s outstanding net debt.
The consideration is broadly in line with the book value of the net assets at completion and, accordingly, the transaction will not result in a material gain or loss on disposal in the consolidated accounts of Stagecoach Group plc.
Road King Infrastructure is a leading Hong Kong listed company with its core business in the investment, development, operation and management of toll roads and other infrastructure projects in China.
Stagecoach Group Finance Director Martin Griffiths said: “Road King has been a non-core part of our portfolio for some time and this transaction is another step forward in the delivery of our Group strategy. It will allow management to focus on our core bus and rail businesses in the UK, North America and New Zealand.”
Stagecoach Group reported a share of operating profits in Road King of £10.5million for the year ended 30 April 2003. Its share of profit before tax for the same period was £9.2million and profit after tax was £8.6million.
As a result of Stagecoach’s disposal of over 80% of its investment, Road King will cease to be treated as an associated undertaking.
Martin Griffiths, Group Finance Director, Stagecoach Group, 01738 642015
Steven Stewart, Corporate Communications, Stagecoach Group, 01738 442111 or 07764 774680
John Kiely, Smithfield Financial, 020 7360 4900
Notes to Editors:
- Stagecoach has held an investment in Road King Infrastructure since April 1998 when it bought an initial 20% stake in the company.
- Shenzhen Investment Limited, which is listed on the Hong Kong Stock Exchange, is the core member of Shum Yip Holdings Company Limited and is involved in property development, infrastructure, transportation and logistics.