ASX Release=MACQUARIE BANK TO ACQUIRE THE LONDON BUS BUSINESS OF...

ASX Release
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MACQUARIE BANK TO ACQUIRE THE LONDON BUS BUSINESS OF STAGECOACH GROUP PLC
23 June 2006 – Macquarie Bank today announced that it had entered into an agreement to acquire 100% of Stagecoach London, the London bus transport business of Stagecoach Group plc (“Stagecoach”), for a total consideration of £263.6 million (A$657.4 million)1.
Stagecoach London, one of the top five operators in the London bus market, owns and leases approximately 1,300 vehicles and employs around 4,300 staff through its London bus operations. Stagecoach London owns 10 depots located in the East of London and provides bus services in the regulated London bus market through its portfolio of over 80 route concessions from the local government body, Transport for London (“TfL”). The routes operated serve an average of 300 million passenger journeys each year. The business being acquired has a strong and experienced management team with extensive experience in the transport and bus industries.
Commenting on the transaction, Macquarie Bank Chief Financial Officer, Greg Ward said, “The Stagecoach London bus operation is an excellent opportunity to acquire a business that provides an essential community service in a regulated market. Its network of depots creates a unique franchise within its region, and the business benefits from strong cashflow visibility through contracted bus route concessions.“