Two big iwi board Go Bus
Two powerful iwi funds have agreed to buy Australian-owned New Zealand bus firm Go Bus for $170 million.
Ngai Tahu Holdings Corporation (NTHC) and Tainui Group Holdings (TGH) have conditionally bought Go Bus from Sydney’s private equity firm Next Capital.
NTHC is the majority investor with a two-thirds share and TGH has the remainder. The purchase is due for completion at September 30.
Go Bus runs urban, school and charter bus services throughout New Zealand, with leading market positions in Hamilton, Napier, Tauranga and Christchurch.
NTHC chief executive Mike Sang said NTHC and TGH had been quietly monitoring Go Bus ‘‘for quite some time’’. The investment was partly debt funded through Westpac bank, he said.
He would not say how much he expected the investment to return.
’’We’re confident we can achieve our benchmark,’’ Sang said.
Go Bus was a well-run business and NTHC and TGH would not be changing management.
Go Bus increased diversity in the mix of investment within NTHC’s portfolio. ‘‘We like a mix of assets.’’
TGH chief executive Mike Pohio said Go Bus had a strong regional presence and was well-placed to grow its footprint nationally. "When it comes to size and scale of businesses, we look at where we can bring things to the table," he said.