Go Bus fleets across the country are changing hands for $170 million, including Dunedin's Citibus fleet. Photo by Hawkes Bay Today.
Nationwide carrier Go Bus has been bought for $170 million
from an Australian private equity company in the latest joint
venture between iwi Ngai Tahu and Tainui.
Ngai Tahu Holdings Corporation and Tainui Group Holdings
announced yesterday they had conditionally bought Go Bus from
Next Capital, Ngai Tahu taking a 66% stake and Tainui 33%.
The purchase is due for completion on September 30.
Ngai Tahu chief executive Mike Sang said when contacted the
iwi ''had had their eyes'' on Go Bus for quite some time,
knowing Next Capital, as a private equity business, would be
willing to sell eventually.
''They would have thought about their options,'' Mr Sang
The deal is being financed through a mix of bank debt and
cash and does not have a performance bonus attached in Go Bus
having to meet any short-term financial targets for Next to
get 100% of the settlement.
''No, it's a clean deal,'' Mr Sang said, confirming the $170
million price tag.
Go Bus has 1750 employees and a fleet of about 1450 vehicles
across the country.
Its annual turnover is understood to be several million
dollars but was not divulged by the iwi yesterday.
Mr Sang said both iwi were in a ''strong position'' to invest
further in Go Bus ''with plans for growth, which will be
ongoing for three to five years'', he said in an interview
with the ODT.
Ngai Tahu and Tainui also have a Waikato dairying systems
joint venture together and have been jointly involved in a
stake in Ryman Healthcare.
Go Bus, with depots spanning Invercargill to Auckland, offers
bus services including charter, special needs transport,
schools and urban transport.
''We've [together] got mandate for reinvestment and growth,''
Mr Sang said.
''Go Bus is the type of investment we seek. It's a well-run
business in a sector we are comfortable with, and is led by
an excellent team,'' he said.
Tainui chief executive Mike Pohio said Go Bus had a strong
regional presence and was ''well placed to grow its footprint
Go Bus chief executive Calum Haslop said the company was
''delighted'' to have Ngai Tahu and Tainui join the Go Bus
''The Go Bus management team are extremely proud of our
achievements to date and we see both iwi as sophisticated
''They are a natural partner for our business as we continue
our journey to becoming New Zealand's leading passenger
transport operator,'' Mr Haslop said.