Mobico Group PLC (LSE:MCG) shares traded down 20% after reporting a deal to sell its North America School Bus business to I Squared Capital, in a deal that ascribes an enterprise value of up to $608 million.
It includes an earn-out of $70 million, subject to performance, and is expected to be completed in the third quarter of 2025.
Net proceeds, expected to be around $365 million to $385 million, will be used to reduce debt.
"This agreement is a significant milestone for Mobico,” said chief executive Ignacio Garat.
“It is a first step in strengthening the group's balance sheet and will allow us to reallocate resources away from a capital-intensive business as we focus on continued deleveraging alongside funding our pipeline of growth opportunities.”
In London, the share was down 12.5p or 21%, trading at 46.41p – valuing the company at just under £300 million.