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19January 2004
Stagecoach sells majority of Road King Infrastructure shareholding
Stagecoach Group plc is pleased to announce that itssubsidiary, 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 RoadKing Infrastructure at HK$5.00 per share.
Total proceeds from the sale before transaction costs areapproximately HK$730million (approximately 52million) in cash, which willinitially be used to reduce the Groups outstanding net debt.
The consideration is broadly in line with the book valueof the net assets at completion and, accordingly, the transaction will notresult in a material gain or loss on disposal in the consolidated accounts ofStagecoach Group plc.
Road King Infrastructure is a leading Hong Kong listedcompany with its core business in the investment, development, operation andmanagement 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 thistransaction is another step forward in the delivery of our Group strategy. Itwill 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 inRoad King of 10.5million for the year ended 30 April 2003. Its share of profitbefore tax for the same period was 9.2million and profit after tax was8.6million.
As a result of Stagecoachs disposal of over 80% of itsinvestment, Road King will cease to be treated as an associated undertaking.
ENDS
Enquiries to:
Martin Griffiths,Group Finance Director, Stagecoach Group, 01738 642015
Steven Stewart, Corporate Communications, Stagecoach Group, 01738 442111 or07764 774680
John Kiely, Smithfield Financial, 020 7360 4900
Notes to Editors
Stagecoach hasheld an investment in Road King Infrastructure since April 1998 when it boughtan initial 20% stake in the company.
ShenzhenInvestment Limited, which is listed on the Hong Kong Stock Exchange, is thecore member of Shum Yip Holdings Company Limited and is involved in propertydevelopment, infrastructure, transportation and logistics.