The board of Go-Ahead Group has agreed a takeover approach that would value the company at nearly 拢650m - but there could yet be a bidding war for the Newcastle firm.
The bus and rail operator revealed on Monday that it had received two takeover approaches which it said it would 鈥渂e minded to鈥 accept.
Now it has revealed it has reached an agreement with a consortium made up of Australian bus operator Kinetic and Spanish transport infrastructure company Globalvia to buy all of the shares in the company at 1,500 pence each. That would value the firm at 拢647.7m.
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But fellow Australian transport firm Kelsian - which has also made an initial takeover approach - has released a statement urging Go-Ahead shareholders not to accept any bid as it finalises its potential offer.
The takeover interest comes after a challenging period for Go-Ahead, in which it received a 拢23.5m fine over a breach of a rail franchise around London.
But there has been growing interest in the 海角视频 transport sector as investors bank on the industry鈥檚 continued recovery following the impact of the pandemic.
Go-Ahead released a statement on Monday night saying it reached agreement on an offer from the Kentic and Globavia bidco to pay Go-Ahead shareholders 1,450p per share plus a special dividend of 50p per share.
That offer was a premium of almost 50% on Go-Ahead鈥檚 share price on May 25, though shares are currently trading above 1,500p, suggesting the market expects a higher final bid for the firm.
Go-Ahead said it expects to complete the deal in October, though a full timetable of the takeover process is still to be published.
Christian Schreyer, group chief executive of Go-Ahead, said: 鈥淭his is a compelling offer which combines an attractive valuation for shareholders with bright prospects for Go-Ahead鈥檚 operations and colleagues around the world.
鈥淲e have confidence in Go-Ahead鈥檚 future as an independent business, but see that being part of a truly global mass transit platform will yield exciting opportunities. We welcome the commitment of Kinetic and Globalvia to invest in the decarbonisation and digitalisation of our operations, and to support our strategy, The Next Billion Journeys.
鈥淎s a standalone business within a global platform, we will be better placed than ever to connect communities and to fulfil our purpose of moving our customers towards a smarter and healthier planet.鈥
Michael Sewards, Co-CEO of Kinetic, said: 鈥淲e are delighted that the board of Go-Ahead has unanimously recommended our offer to shareholders. As Australia and New Zealand鈥檚 largest and fastest growing bus operator, with the majority of our revenue aligned to long-term government contracts, we will bring proven experience to accelerate the delivery of Go-Ahead鈥檚 Next Billion Journeys growth strategy.
鈥淲e are one of world鈥檚 largest operators of electric buses and we will not only provide the necessary long term capital but the expertise to facilitate the rapid transition of Go-Ahead鈥檚 bus fleet from diesel to zero emission technology.鈥
Javier P茅rez Fortea, CEO of Globalvia, said: 鈥淎s a leader in the management of transport infrastructure concessions, specialising in railways, we believe we can add real value in helping Go-Ahead become a leading global, multi-modal, mass transit platform.
鈥淲ith operations around the world, our experience will help Go-Ahead grow in existing and new geographies while remaining a standalone 海角视频 business. Along with Kinetic we have a long-term approach and we are culturally aligned sharing a common mission based on delivering value for our customers.鈥
Potential bidder Kelsian has released a statement confirming it is still in discussions in taking over Go-Ahead, though that 鈥渄oes not amount to an announcement of a firm intention to make an offer".
The company said: 鈥淜elsian believes that the potential combination with Go-Ahead would create an international leader in multi-modal, mass transit supporting a sustainability agenda for its passengers and governments, with strong growth prospects.
鈥淜elsian believes that, if an offer is made by Kelsian, it could bring to bear its expertise across safety, operational efficiency, digital, decarbonisation, and experience operating in the 海角视频 to enhance and accelerate the growth of Go-Ahead creating substantial value for Kelsian shareholders as well as benefiting wider stakeholders including passengers, governments and employees. Kelsian continues to carefully assess the opportunity with a disciplined focus on the strategic and financial rationale.
鈥淜elsian therefore urges Go-Ahead shareholders to take no action at this time.鈥
Shares in Go-Ahead, which had been trading as low as 545p in March, have risen again in early trading and currently stand at 1,540p.
