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28/12/2018 — General
Infratil to divest NZ Bus

The infrastructure investor Infratil Ltd (NZX & ASX: IFT) has announced a conditional sale of its 100% interest in its NZ Bus business to funds controlled by Next Capital.

The agreement is conditional on counterparty consents to the change of control, Overseas Investment Office approval, and standard material adverse change clauses, as well as full documentation of the vendor loan.

Infratil is hoping to conclude the transaction by June 30, 2019.

Infratil expects to receive proceeds of between $218 and $240 million, with final proceeds adjusted for normal working capital, capital expenditure, and net debt, and an earn-out.

Proceeds include provision of a vendor loan of between $20 and $30 million repayable within 5.5 years of completion.

“The conditional sale agreement enables NZ Bus to continue to grow its business and people under new ownership and allows Infratil to focus its investments on its established platforms targeting renewable energy, retirement services, and growth in data and connectivity” said Morrison & Co executive and NZ Bus chairman Kevin Baker.

“Next Capital considers that the bus industry provides the core public transport function in NZ's dynamic metropolitan environments and is excited about its re-entry into this important sector, following prior successful investments in GoBus in NZ and Forest Coach Lines in Australia.

UBS New Zealand advised Infratil on the strategic review and the transaction, and Murray & Co advised Next Capital.

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