NZ Bus's business with Auckland Council shrank by a around a third when re-negotiated late last year. Photo / File.
Infratil has agreed to sell its NZ Bus unit to Next Capital for up to $240 million, but will help the Australian private equity firm pay for it.
Announced after the New Zealand market had closed, Infratil said it's reached a conditional sale with Next Capital, which sold Go Bus
to Ngai Tahu Holdings and Tainui Group Holdings four years ago. The New Zealand firm expects to receive between $218 million and $240m from the sale, with the final proceeds adjusted for working capital, capital spending, net debt and an earnout.
Infratil will also provide vendor finance of between $20m and $30m repayable over five and a half years.
The deal needs counterparty consents, Overseas Investment Office approval, and the vendor loan to be fully documented.
"The conditional sale agreement enables NZ Bus to continue to grow its business and people under new ownership and allows Infratil to focus its investments on its established platforms and targeting renewable energy, retirement services, and growth in data and connectivity," Morrison & Co executive and NZ Bus chair Kevin Baker said in a statement to the ASX.
