The sale of passenger transport company Go Bus from a Ngāi Tahu and Waikato-Tainui partnership to Melbourne-based industry operator Kinetic has completed today.
Ngāi Tahu Holdings and Tainui Group Holdings announced their decision to sell Go Bus in March, subject to approval from the Overseas Investment Office. The office’s approval was received in June.
Kinetic operates SkyBus in Auckland and 177 other passenger transit services across Australasia, including leading Queensland transit brands Surfside Buslines and Sunbus, and Sydney’s largest bus and coach charter company Telford’s. It is majority-owned by OPTrust, one of Canada’s largest defined benefit pension plans.
Ngāi Tahu Holdings Chair Mark Tume says all parties are pleased with the outcome.
“We purchased Go Bus with our partner Tainui Group Holdings in 2014 and our focus on development has resulted in strong growth across the business. The completion of this sale to Kinetic allows us to realise the value of that growth.
“Ngāi Tahu Holdings will use the proceeds to provide further balance sheet flexibility to fund further investment into our existing portfolio and take advantage of opportunities arising from the current market.”
Tainui Group Holdings Chairman Sir Henry van der Heyden says the completion of the sale marks the conclusion of a successful ownership partnership with Ngai Tahu for Go Bus.
“Bringing together the combined resources of the two iwi has yielded a result where the sum is greater than the parts. We’re proud that Go Bus is a larger and stronger business with a great team in place, as it begins life as part of the Kinetic family,” Sir Henry says.
Mark Tume and Sir Henry also thanked the Go Bus team for their hard work over the past six years, with Kinetic being well-placed to lead the next stage of the Go Bus journey with more than 40 years as a major operator in the mass transit industry.
Ngāi Tahu Holdings and Tainui Group Holdings were advised by Murray & Co and Minter Ellison Rudd Watts.