Terminal value

21 Jun 2019 By Ed Cropley Follow @edwardcropley

The German train group is selling its Arriva unit for a mooted 3.5 bln euros. Its British buses and European networks justify the price, suggesting the UK rail franchise comes for free. It’s a fair call given opposition leader Jeremy Corbyn wants to end private ownership.

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U.S. buyout group Carlyle and German asset manager DWS are preparing to bid for UK rail-and-bus firm Arriva from German owner Deutsche Bahn, Reuters reported on June 6.

The unit, which Deutsche Bahn bought for an enterprise value of nearly 2.5 billion pounds in 2010, was mooted to fetch around 3.5 billion pounds at an auction expected to kick off in mid-June, sources said.

Arriva employs 53,000 people across Europe. It generated adjusted EBITDA of 575 million euros in 2018 on sales of 5.4 billion euros.

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