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

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)

Comments and questions
4

Great to see Maori corporate interests performing so well and wisely investing thier treaty settlement capital to grow thier capital base over time.

When can the public expect to see some tax revenue out of all this?

Never, They are both non tax paying entities

Although in time there should be benefits to the tax payer if the Charitable Trusts dispurse their funds appropriately and get the beneficiaries of the Iwi's upskilled, employed etc.

Indirectly, there is a large contribution to the country through job creation and capital develoment spending already. For example, Ngai Tahu's development of the Eyrewell forest into dairy.

The problem with the charitable trust scheme is that there is no requirement for them to dispurse their profits. Should they choose, they can just continue to invest those funds and not dispurse them to their cause which would only provide limited benefits to the coutnry and the economy. I don't think these organisations are in that category though.

We have been seeing tax revenue for some time, from the companies they own, the gst that is generated, the income tax from the many employees of their companies and organisations, then there is the various taxes paid by the contractors, consultants and suppliers who service the various projects and companies.

Then there is the regional growth, employment, education and community building strategies that these two iwi are engaged in, all of which benefit communities and the public.

So maybe the question should be asked of some of the other large national and international corporations that aren't Maori owned who contribute far less and either send their profits overseas or retain them among their membership, when can the public expect to see something from them?