A consortium of Australasian bus operator Kinetic and partner Globalvia has completed the acquisition of the Go-Ahead Group under a new joint venture arrangement
The sale of the Go-Ahead Group to the consortium of Australia-based operator Kinetic and Spanish infrastructure and transport concession manager Globalvia completed on 10 October following approval by the courts. First announced in June, an initial agreement for 1,500p per share including a 50p dividend was subsequently increased to 1,550p per share, valuing the company at £669m and securing the backing of Go-Ahead shareholders. Go-Ahead shares were de-listed from the London Main Market on Tuesday 11 September.
The acquisition will see Kinetic take a 51% stake, more than doubling its existing fleet, and expand its capabilities, transforming it into a global, multi-modal public transport owner and operator. The company is currently the largest bus operator in Australia and New Zealand, with almost 5,000 buses in its fleet. It is also Australasia’s largest operator of electric buses, with its current fleet expected to grow to 300 battery electric buses by the end of 2023. Kinetic says it is aiming for a 100% net zero-emission operation by 2035.
Kinetic’s partner in the Go-Ahead acquisition, Globalvia, which will hold 49% of the joint venture, is a global manager of transport infrastructure concessions, specialising in highways and railways. With complementary cultures, values and operating philosophies, as well as a shared commitment to market leadership, growth and innovation, the partners say the acquisition gives all three businesses the chance to share best-in-class knowledge and technology and pursue new business opportunities together across the globe.
Go-Ahead will remain a standalone business, and Kinetic and Globalvia say they are committed to facilitating the transition of its bus fleet from diesel to zero-emission technology under the company’s existing strategy, partnering with governments to work towards its zero-emission public transport goal.
Kinetic Co-CEO Michael Sewards said: “This acquisition significantly enhances the scale and scope of our operations as a multi-modal, mass transit platform. Together with Globalvia and the Go-Ahead team, we are combining significant bus operations, infrastructure solutions and decarbonisation expertise. Kinetic is well-positioned to provide support and patient capital to facilitate the rapid electrification of Go-Ahead’s bus fleet to net zero. This is fully aligned with Kinetic’s long-term strategic focus for Australia and New Zealand to have the first fully electric bus fleet in Australasia by 2035.”
Go-Ahead CEO Christian Schreyer added: “This transaction sees the leading electric vehicles operators in the United Kingdom, Australia and New Zealand come together. I am very confident about the future for Go-Ahead under the ownership of Kinetic and Globalvia. The consortium will support our existing management and leadership team to accelerate the delivery of Go-Ahead’s ‘Next Billion Journeys’ growth strategy, and to become a net zero company.”
With over 27,000 employees and a fleet of more than 6,000 buses across the UK, Ireland, Sweden and Singapore, Go-Ahead is responsible for around a quarter of London’s buses for Transport for London and also operates rail services in the UK, Norway and Germany. It is one of London’s largest operators of electric buses. In total across its operations, the company operates over 300 battery electric buses, and will soon begin operating its first hydrogen buses in area around London’s Gatwick airport.
