SeaLink Travel Group (ASX:SLK) is set to purchase Transit Systems for $635 million in a move to turn the company into one of Australia’s leading multi-modal transport providers.
Transit Systems is a large Australian private operator of metropolitan public bus services and an established international bus operations in London and Singapore.
Under the deal, transit boss Clint Feuerherdt will replace Jeff Ellison as SeaLink Group chief executive, with Mr Ellison set to stay on as an executive director for a short period to assist the transition.
SeaLink will fund the acquisition through a fully underwritten $65 million placement to new and existing institutional shareholders and a fully underwritten $89 million pro-rata, accelerated, non-renounceable entitlement offer.
The proposed acquisition is subject to SeaLink shareholder approval and Foreign Investment Review Board approval.
Sealink (ASX:SLK) is currently in a trading Halt its shares last traded at $3.91.