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- Tourism and bus company Kelsian Group (KLS) agrees to sell its East London bus operations to Stagecoach for £20 million (A$35 million)
- Under the agreement, the company will divest 11 route contracts, about 500 bus and depot staff and the Lea Interchange depot site lease
- The purchase price will see £10 million be paid on completion of the deal and a further £1 million paid per annum for 10 years
- Completion of the deal is expected next month
- KLS are up 1.08 per cent and trading at $7.51 per share at 3:48 pm AEST
Australia’s largest land and marine transport service provider Kelsian Gorup (KLS) has agreed to sell its East London bus operations to Stagecoach for £20 million (A$35 million).
Under the agreement, the company will divest 11 route contracts, about 500 bus and depot staff, the Lea Interchange depot site lease and the operating assets for the associated bus operations.
The purchase price will see £10 million be paid on completion of the deal and a further £1 million paid per annum for 10 years.
“The completion of the transaction will be another major milestone in Kelsian’s repositioning in the important UK transport market, which will provide a strategic platform for potential UK and European expansion opportunities,” the company said.
Kelsian will still have a stake in the London bus market with a 12.5 per cent interest in the RATP Dev Transit London joint venture and 100 per cent interest in the Westbourne Park bus depot.
Completion of the deal is expected next month.
On the market, KLS shares were up 1.08 per cent and trading at $7.51 per share at 3:48 pm AEST.
