Australia's Kelsian to buy All Aboard America! for $325 mln (updated)

Kelsian

15/03/2023 09:23

(Updates with details)
       March 15 (Reuters) - Australia's Kelsian Group Ltd
 KLS.AX  said on Wednesday it would acquire U.S.-based coach and
bus operator All Aboard America! Holdings Inc in a $325 million
deal.
    The transit operator said it would fund the acquisition
through an equity raising of A$281 million ($187.46 million)
where a shareholder could subscribe to one new share for every
eight and a half shares of the company.
    New shares will be issued at A$5.55 per share, which
represents a discount of 14.4% to the company's last close on
Monday.
    The operator has been looking to expand its footprint
internationally as last year it had signalled to make a bid for
the British transport operator Go-Ahead Group  GOG.L . 
    On Tuesday, local media reports cited that Kelsian was
finalizing negotiations with All Aboard's owner Tensile Capital
Partners.  
        The acquisition is expected to be earning accretive in
the upper single digit for earning per share excluding one-off
items, the company said in a statement. 
  
         
  
        
  
        
  
($1 = 1.4990 Australian dollars)

 (Reporting by Navya Mittal in Bengaluru; Editing by Rashmi Aich
and Eileen Soreng)
 ((Navya.Mittal@thomsonreuters.com;))