Mobico receives non-binding cash takeover proposal at 46 pence a share
Key Facts
Mobico Group received a non-binding cash takeover proposal from Autobuses de Leon at 46 pence a share, in an announcement on 21 October 2026, according to the Press Association. The potential takeover values the group at about £282 million, the agency said, based on the proposed cash price. The proposal followed an initial approach and subsequent negotiations between the parties, according to Alliance News, citing the company. Mobico's independent directors are minded to recommend the proposal to shareholders if it becomes a firm offer, subject to agreement on its full terms and conditions. Britain's Takeover Panel recorded the formal start of the offer period at 09:47 London time on the day of the announcement.
The proposed cash price represents a premium of about 56% to Mobico's closing share price on the Tuesday evening before the announcement, according to the Press Association. The bidder is backed by CMC Group, which has an existing equity stake in the takeover target. CMC holds about 26% of Mobico, making it the group's largest shareholder at the time of the announcement, the agency said. In London trading on Wednesday morning, 21 October, Mobico shares rose about 33% following confirmation of talks between the parties. The shares reached 39.5 pence in that session, compared with the cash price proposed by the bidder to acquire the group.
The proposal follows a trading update in which Mobico reported group revenue growth of 5.0% year on year in the second fiscal quarter of 2026. The company attributed the growth to momentum at Alsa and a recovery in German rail operations, among the factors driving the group's performance during the period. Alsa's revenue, including UK coach operations, rose 8.0% compared with the second fiscal quarter of 2025, according to the update published on Mobico's website. Alsa's quarterly revenue growth therefore exceeded that of the group as a whole over the same period. Mobico maintained its annual guidance in that update, which preceded the takeover proposal, saying: "Guidance for the year remains unchanged."
Alongside the potential takeover developments, Mobico agreed in principle to sell its West Midlands bus assets and operations to the local authority, according to a separate company statement on the sale of its UK bus business. The group estimated expected initial net proceeds from the deal at about £24 million, after deducting liabilities to be transferred under the agreement. The company described the basis of that estimate as "net of transferred liabilities" when announcing the expected sale proceeds. Mobico aims to reduce the group's exposure to uncertainty surrounding the local franchising system through the disposal, according to its statement. The agreement in principle covers bus assets and operations in the West Midlands, while UK coach operations remain within Alsa's revenue scope in its trading update.
As a next step, Mobico's directors agreed to give the bidder access to confirmatory due diligence ahead of a possible formal offer, according to Alliance News. The independent directors' position on recommending the proposal to shareholders remains conditional on agreement, with the wording cited from the company stating: "subject to agreement on full terms and conditions". Mobico expects the sale of its UK bus business to close around November 2026, according to the timetable announced when the agreement in principle was reached. The potential takeover, meanwhile, faces a regulatory deadline for Autobuses de Leon to announce a firm intention to make an offer or withdraw. Britain's Takeover Panel set that deadline at 17:00 London time on 18 November 2026.