Chief executive John Simpson says negotiations are at too early a stage to name the company involved but adds that the deal will cost a relatively small amount of cash while adding “exciting technology” to the firm's portfolio. Mayflower says it wants to raise £66.7m to fund small strategic acquisitions and overseas expansion. It hopes to sell up to 95.3m new shares, offering investors four shares for every 11 they own at 70p each - a 25 per cent discount. The share price had risen amid speculation that a management buyout was on the cards. This announcement comes after Mayflower secured a £70m order from three London bus operators.
The deal, which takes the TransBus order book to £240m, will see it supply about 320 double-deck and single-deck buses for Go-Ahead, Metroline and London United.