Adelaide-based transport group Kelsian is set to enter the huge US tourism and transport market via the acquisition of coaches and charter bus business All Aboard America! Holdings.
It is understood Kelsian is looking at a deal to acquire All Aboard, finalising negotiations with owner Tensile Capital Partners and associated funding.
As of yesterday, there were no reports of the current surge in worries about banks and financial dealings in the wake of the collapse of Silicon Valley Bank, having any impact on the deal.
All Aboard is said to be the fourth-largest motorcoach operator in the United States and Canada. It operates charters, tours, casino and cruise shuttles, and scheduled routes. It is based in mesa, Arizona, according to its website.
The Financial Review reckons the deal could be worth half a billion dollars after the Kelsian asked the ASX to halt trading in its shares until Thursday.
No reason was given except that the halt was necessary “to assist the Company in managing its continuous disclosure obligations as the Company expects to make a material announcement to the market in relation to the stated purpose.”
Kelsian shares closed at $6.35 on Monday ahead of the halt, which valued the company at more than $1.6 billion.
Kelsian Group is the country’s major people mover (outside state owned rail and bus companies). Kelsian says it is Australia’s largest land and marine transport service provider and tourism operator, with established operations in London, Singapore and the Channel Islands.
On Monday the Financial Review reported that Kelsian Group was set to pitch equity investors for a $300 million capital injection, with proceeds pegged for an acquisition in the United States.
It is understood Kelsian has had Macquarie Capital’s bankers lining up fund managers participate in the raising and associated equity. The size of the deal was put at $500 million.
Kelsian abandoned a move last year to but the UK bus and rail market operator Go-Ahead. The shares fell sharply when the possible deal emerged and they fell 20% to a two yerar low of $5.87 on July 21 and 22. They bounced more than 15% after the deal was dropped.
Greyhound in the US is European owned by German group FlixMobility.
