The likely buyers of North East transport operator Go-Ahead Group have increased their offer for the business by about £22m.
The consortium of Kinetic TCo Pty Ltd - Australia and New Zealand's largest bus network - and Spanish transport firm Globalvia Inversiones S.A.U has now proposed to pay 1,550 pence for each share. The move values Go-Ahead at about £669m, around 11.2 times the group's earnings in the year to the end of January 2022.
Go-Ahead has now delayed its general meeting by eight days to allow shareholders more time to consider the deal which, if it goes ahead, is expected to complete in October. In an update to investors, Go-Ahead did not say why the increased offer was made despite the boards of both companies agreeing a £647m deal in June.
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Rival bidders Kelsian pulled out of the frame in July, citing volatility in the markets which had impacted its own share price.
Michael Sewards, co-CEO of Kinetic, and Javier Pérez Fortea, CEO of Globalvia, said: "This transaction will create a leading global, multi-modal, mass transit platform and unlock value for all stakeholders. Given our track record and experience we will provide long term capital and expertise to support the acceleration of Go-Ahead's strategy and transition to net zero."
Go-Ahead's group chief executive Christian Schreyer had previously described the first offer made by Kinetic and Globalvia as "compelling" and said it combined an attractive valuation with good prospects for the business. He said: “We have confidence in Go-Ahead’s 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. As 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.”
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