Disposal
19 January 2004 - 7:17PM
UK Regulatory
RNS Number:3617U
Stagecoach Group PLC
19 January 2004
19 January 2004
STAGECOACH SELLS MAJORITY OF ROAD KING INFRASTRUCTURE SHAREHOLDING
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.
ENDS
Enquiries to:
Martin Griffiths, Group Finance Director, Stagecoach Group, 01738 642015
Steven Stewart, Corporate Communications, Stagecoach Group, 01738 442111 or
07764 774680
John Kiely, Smithfield, 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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
DISGUUCGGUPCURB