Shares Jump as National Express Owner Sells US School Bus Business to Cut Debt

Wednesday, 21 August 2024, 12:03

Shares in National Express owner Mobico surged as it announced the sale of its US school bus business to tackle its £1.2bn debt. With a 24% increase in half-year profits, investors reacted positively. This sale is crucial for Mobico's financial stability.
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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.

This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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