UK transport group Stagecoach (SGC) is planning to buy back up to £60m worth of shares over the next 12 months. The company recently completed the sale of its North American business for an enterprise value of $271m (£208m). It’s also been disqualified by the Department for Transport (DfT) for all three of the UK rail franchises it had bid for, due to being “non-compliant” with pensions exposure.
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In light of these developments, Stagecoach management felt the buyback was “an appropriate use of our cash at this time”. Some of the rest of the proceeds of the North American sale will be used to pay down debt, which stood at £461m or 258 per cent of equity at the half-year results.
