Stagecoach makes surprise return to London bus market with £52m ELBG purchase

Stagecoach believes it can turnaround the struggling ELBG business

Stagecoach believes it can turnaround the struggling ELBG business

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.

When the bank acquired the Stagecoach London business many in the industry were surprised by how much it had paid to acquire the firm. The bank's cash offer was 10...