(Alliance News) - Go-Ahead Group PLC on Monday said it has received two takeover proposals at terms it "would be minded to recommend" should a firm offer materialise.
Go-Ahead shares were 20% higher at 1,450.00 pence each in London on Monday morning, giving it a market capitalisation of above GBP620 million.
The Newcastle, England-based public transport operator said it has received a takeover proposal from Sydney-listed transport Kelsian Group Ltd and another from a consortium consisting of Kinetic Holding Co Pty Ltd and Globalvia Inversiones SAU.
Kinetic is a bus operator in Australia and New Zealand, while Globalvia is a Madrid-based transport infrastructure firm.
Kelsian operates transport services in the UK, Singapore and Australia. In May, Kelsian sold its Lea Interchange depot in east London to Stagecoach Group PLC for GBP20 million.
Both approaches were unsolicited.
"The most recent revised proposals received from each of Kelsian and the consortium are both at a level which, should a firm offer be made, the board of Go-Ahead would be minded to recommend such a firm offer to Go-Ahead shareholders, subject to the agreement of other customary terms and conditions. Accordingly, both parties have been given access to undertake confirmatory due diligence," Go-Ahead said.
The UK transport sector has been the target of takeover interest of late. In May, Pan-European Infrastructure III SCSp, an infrastructure fund managed by DWS Infrastructure, declared its acquisition of Stagecoach Group PLC unconditional. Stagecoach had backed out of an all-share merger with National Express Group PLC.
Meanwhile, a third UK peer, FirstGroup PLC, also has received an approach.
On Thursday last week, it said it rejected a possible takeover offer from I Squared Capital Advisors (UK) LLP, saying the firm cash component undervalues the company and the contingent component doesn't give shareholders enough certainty.
By Eric Cunha; ericcunha@alliancenews.com
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