Ngāi Tahu, Tainui agree to buy Go Bus from Next Capital for $170m

Tainui Group Holdings Chief Executive Mike Pohio

Free audio stream, including stories that are padlocked on our site. Listen on any device, anywhere. Updated twice daily. The audio stream takes several seconds to start on Android devices.

Launch Radio player

Ngai Tahu Holdings Corp and Tainui Group Holdings, the iwi investment companies, have agreed to buy national passenger transport firm Go Bus from Australian private equity firm Next Capital for a reported $170 million.

Ngai Tahu will take a two-thirds stake in Go Bus and Tainui will take the remaining third, according to a joint statement. The purchase, due to settle on Sept. 30, is conditional, they said, without giving details.

Next Capital acquired Go Bus, which operates urban, school and charter bus services throughout New Zealand, in 2012. According to the firm’s website it paid $84.6 million for an 86.8 million stake. A range of local investors owned the balance, according to the Companies Office.

The bus company has a “solid earnings stream stemming from long term contracts with limited revenue and margin risks,” according to Next Capital. It also has a “pipeline of growth opportunities as a result of the structure of the New Zealand bus industry and the impact of regulatory initiatives.”

Go Bus’s financial performance is “underpinned by long-term contracts with local and central government and associated agencies.”

(BusinessDesk)


This article is tagged with the following keywords. Find out more about MyNBR Tags

NZ Market Snapshot

Forex

Sym Price Change
USD 0.7542 -0.0001 -0.01%
AUD 0.9753 -0.0007 -0.07%
EUR 0.6938 0.0006 0.09%
GBP 0.5078 0.0008 0.16%
HKD 5.8480 -0.0011 -0.02%
JPY 89.8890 -0.0730 -0.08%

Commods

Commodity Price Change Time
Gold Index 1198.2 -6.000 2015-03-27T00:
Oil Brent 56.4 2.710 2015-03-27T00:
Oil Nymex 48.9 -2.560 2015-03-27T00:
Silver Index 17.1 -0.071 2015-03-27T00:

Indices

Symbol Open High Last %
NZX 50 5854.2 5854.2 5854.2 -0.60%
NASDAQ 4863.7 4899.3 4863.4 0.57%
DAX 11920.2 11954.1 11843.7 0.21%
DJI 17673.6 17729.1 17678.0 0.20%
FTSE 6895.3 6910.6 6895.3 -0.58%
HKSE 24727.5 24910.1 24486.2 1.50%
NI225 19295.2 19474.1 19285.6 0.63%