Stagecoach to return £340m to investors
Bus operator Stagecoach has proposed returning £340 million to shareholders, following a review of its capital structure.
The proposals, which require shareholder approval, are worth approximately a fifth of the company’s market capitalisation.
The one-off payment would amount to 47 pence per ordinary share and follows similar moves over the past six years, during which time the Perth, Scotland-based company has returned more than £1 billion to shareholders.
The Group’s last major return of cash to shareholders was in 2007 when it returned approximately £700 million.
If approved, cash could be handed back by the end of October.
Sir Brian Souter, Stagecoach’s chief executive and founder, would receive approximately £51 million from the cash return from his 15 per cent stake in the company.
His sister and co-founder, Ann Gloag, is set to make £37 million.
She holds just under 11 per cent of the shares.