Infratil has completed the sale of its NZ Bus business (NZ Bus) to funds controlled by Next Capital. Infratil initiated a strategic review of its investment in NZ Bus in February 2018, and a conditional sale agreement was executed with Next Capital in December 2018. The sale agreement was conditional upon counterparty consents to the change of control and Overseas Investment Office approval
(among other things), which have now been received.

The final consideration after post-completion adjustments for working capital, capital expenditure, and an earnout mechanism is expected to be between US$ 125 – 145 million, and values 100% of the business at between US$ 145 million - 165 million. The final consideration reflects the challenging environment the business has operated in over the last eight months and Infratil’s mid-point estimate of the earn-out component outcome. Upfront cash proceeds of approximately $93 million have been received. The balance (after the post-completion adjustments and earnout) will be paid in cash and a vendor loan of up to $20 million (based on the expected proceeds), repayable within 5.5 years of completion.

UBS New Zealand advised Infratil on the strategic review and the transaction, and Murray & Co advised Next Capital.