- SeaLink Travel Group has successfully completed an institutional placement and entitlement offer
- Collectively the company will raise approximately $154 million to acquire Transit Systems Group
- Transit Systems is Australia’s largest private operator of bus services, with operations in London and Singapore
- This is a strategic move for SeaLink to become a multi-mode transport provider and increase its revenue growth
- Shares have soared 20.4 per cent today, with shares trading at $4.61
SeaLink Travel Group has successfully completed a fully-underwritten institutional placement and entitlement offer.
Collectively, the placement and entitlement offer will raise gross proceeds of approximately $108 million, upon settlement.
In addition, a retail component of the entitlement offer is expected to raise approximately $46 million.
The placement and entitlement offer attracted strong support from existing and new institutional shareholders.
The funds raised are going towards acquiring Transit Systems Group, Australia’s largest private operator of metropolitan public bus services, with an international presence in London and Singapore.
“We are pleased with the strong support shown by new and existing institutional shareholders for the equity raising and the acquisition of Transit Systems Group,” Managing Director and CEO Jeff Ellison said.
Transit Systems operates 3129 buses across 40 different long-term contracts in Perth, Sydney, Melbourne, Adelaide, as well as London and Singapore.
Between 2018 and 2019, Transit Systems generated revenue of $895 million and earnings before interest and tax of $61 million on a pro-forma basis.
“This will create a large Australian multi-modal transport provider, with established international operations in Singapore and the United Kingdom,” Jeff continued.
SeaLink is a dynamic tourist and travel company operating over 69 vessels. SeaLink has more than 1600 dedicated staff across Australia and serves more than eight million customers annually.
Acquiring Transit Systems Group is a strategic step in diversifying the company’s offerings and provides new avenues for financial growth.
SeaLink’s share price has soared by 20.4 per cent following news of the acquisition. Shares are trading at $4.61 as at 1:24 pm AEST.