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On the up: Stagecoach

Saturday 23 January 1999 20:02 EST
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Shares in Stagecoach, the bus and train operator, surged by 9 per cent after its pounds 180m offer for Citybus Group, Hong Kong's second-biggest bus company, was accepted by Citybus's majority shareholders.

Citybus holds franchise routes for bus routes on Hong Kong Island and to and from the city's new airport. Stagecoach said the acquisition would be earnings enhancing from its second year. Stagecoach said it would name three of its executives to Citybus's board.

It is issuing pounds 140m in new shares to pay for the acquisition and will use debt to finance the remainder of the cost. .

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