Rail and bus operator Stagecoach said on Monday it had reached agreement to divest all of its New Zealand operations to local specialist investor Infratil.

The enterprise value agreed for the disposal is NZ$250.5m (US$172m) in cash. Taking account of cash retained by Stagecoach, the reduction of Stagecoach’s net debt will be some £95m.

The disposal is not seen having a material impact on Stagecoach’s earnings per share.

The New Zealand operation, comprising bus services around Wellington and Aukland and some ferry services, has been a small but relatively successful part of Stagecoach’s portfolio. But the company wants to concentrate on organic growth in and acquisitions in the UK and North American markets.

It said on Friday that it had received several approaches for its New Zealand operations.

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