NZ Bus owner Infratil is to sell the transport operator, and will partially finance the deal.
It has announced a conditioning deal with Next Capital, expected to be settled around June next year.
On completion of the transaction, Infratil expects to receive proceeds of approximately $218 – 240 million, with final proceeds adjusted for normal working capital, capital expenditure, and net debt, and an earnout.
Proceeds include a provision of a vendor loan of between $20 and $30 million repayable within 5.5 years of completion.
“The conditional sale agreement enables NZ Bus to continue to grow its business and people under new ownership and allows Infratil to focus its investments on its established platforms targeting renewable energy, retirement services, and growth in data and connectivity,” says Morrison & Co executive and NZ Bus chairman Kevin Baker.
“Next Capital considers that the bus industry provides the core public transport function in NZ’s dynamic metropolitan environments and is excited about its re-entry into this important sector, following prior successful investments in GoBus in NZ and Forest Coach Lines in Australia,” says Next Capital partners John White and James Murphy.
“We look forward to the opportunity to continue the NZ Bus journey, partnering with Auckland Transport, Greater Wellington Regional Council and Bay of Plenty Regional Council, to deliver superior public transport outcomes across New Zealand and drive the long-term success of this iconic NZ business.”
Infratil has owned NZ Bus since 2005. It has struggled in recent years, losing some key Auckland and Wellington-based contracts.
Next Capital was a former owner of Go Bus, a New Zealand based public transport operator and Forest Coach Lines, a Sydney-based public transport operator. NZ Bus will be its fourth major investment in New Zealand following Hirepool, Healtheries and Nutra-Life.
