Go-Ahead deal gets go ahead
BOARD AGREE TO £650M TAKEOVER
TRANSPORT giant Go-Ahead yesterday agreed a takeover deal worth nearly £650million.
The bus and train operator’s board is backing a bid by a consortium made up of Australia’s Kinetic Holding Company and Spain-based transport infrastructure management firm Globalvia.
The 1500p per share offer represents a premium of 10.2 per cent to Go-Ahead’s closing price yesterday. It came at the end of a day in which Go-Ahead revealed it had been approached by two suitors. The other was Australian transport firm Kelsian.
Founded over 44 years ago, Kinetic is the largest bus operator in Australia and New Zealand, with nearly 4000 buses and 6000 employees.
Globalvia is a transport infrastructure firm specialising in roads and railways.
The consortium said it aimed to accelerate plans to grow Go-Ahead and provide the funds to transition its bus fleet from diesel to zero emission technology. Bosses also stressed that Go-Ahead would remain a standalone business and stay headquartered in Newcastle and London with a UK board, retaining the existing chair and chief executive. The deal, which comprises 1450p per share in cash and a special dividend of 50p a share, is worth £647.7million. It comes amid a flurry of takeover activity in the transport sector. Perth-based Stagecoach is set to be bought by German investor DWS in a £595million deal while Aberdeen’s FirstGroup rejected a £1.2billion takeover approach from a US suitor. Analysts believe bidders are betting that congestion and pollution will force local councils to invest in public transport and discourage the use of cars. Go-Ahead runs more than 6000 buses in England.