Shares Jump as National Express Owner Sells US School Bus Business to Cut Debt
Significant Sale Announcement by National Express Owner
Mobico has officially announced the sale of its North American school bus business, a strategic move aimed at reducing its considerable £1.2bn debt. This decision comes on the heels of the company reporting a 24% increase in half-year profits, reaching £71.2m. Investors greeted this news enthusiastically, with shares experiencing a dramatic over 20% rise upon market opening, eventually stabilizing at a 14% increase to 66p.
Financial Implications of the Sale
The proceeds from the sale of the US school bus division are expected to play a pivotal role in enhancing Mobico’s financial position. This initiative is part of a larger strategy to improve fiscal health and investor confidence. Increased profitability and strategic asset liquidation reflect Mobico's commitment to navigating financial challenges effectively.
- Key drivers: Reducing debt.
- Market response: Positive investor sentiment.
- Future outlook: Improved financial stability.
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