To funds controlled by Next Capital, Infratil Limited (ASX: IFT) today announced a conditional sale of its 100% interest in its NZ Bus business (NZ Bus). The agreement is provisional on counterparty consensuses to the Overseas Investment Office approval, change of control and standard material adverse change clauses, as well as full documentation of the vendor loan. The transaction is expected to be around 30 June 2019 subject to the satisfaction of the conditions, completion. [optin-monster-shortcode id=”swikrbu1d9j9aq0o4cko”]
Infratil expects to receive proceeds of approximately $218 – 240 million, on completion of the transaction, with final proceeds adjusted for normal working capital, net debt, capital expenditure, and an earnout. A vendor loan of between $20 and $30 million repayable within 5.5 years of completion are included in the proceeds. Kevin Baker, Morrison & Co executive and NZ Bus Chairman.
The conditional sale agreement allows Infratil to focus its investments on its established platforms targeting retirement services, renewable energy, and growth in data and connectivity and enables NZ Bus to continue to grow its business and people under new ownership.
Following prior successful investments in GoBus in NZ and Forest Coach Lines in Australia, Next Capital is excited about its re-entry into this important sector and considers that the bus industry provides the core public transport function in NZ’s dynamic metropolitan environments. To deliver superior public transport outcomes across New Zealand and drive the long-term success of this iconic NZ business, they look forward to continuing the NZ Bus journey and to the opportunity partnering with Greater Wellington Regional Council, Auckland Transport and Bay of Plenty Regional Council. On the strategic review and the transaction, UBS New Zealand advised Infratil, and Murray & Co advised Next Capital.
Infratil Limited (ASX: IFT) traded flat at $3.600 as at December 24, 2018 and has seen a performance change of 22.03% in the last one year.
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