Stagecoach returns to London bus operation

October 15

Stagecoach has reacquired the London bus business that it sold in 2006

Stagecoach has reacquired the London bus business that it sold in 2006

Perth-based Stagecoach is to make a remarkable return to bus operation in London with the surprise £52m cash purchase of East London Bus Group.

The price that the group is paying for the business is in direct contrast to the £263.6m that it received for ELBG from Australian investment bank Macquarie in the summer of 2006.

ELBG has suffered financially in recent years. For the year ended 2 April 2010, the acquired business generated unaudited consolidated revenue of £253.5m and...