Good evening,

It looks like there’s still plenty of appetite for bus companies.

Australia’s largest bus network, Kinetic, is in exclusive negotiations to acquire Next Capital’s urban bus line business, NZ Bus. The strategic buyer knocked out underbidder Kelsian Group in a fast-moving process run by UBS, and private equity firm Pacific Equity Partners also took a look.

The deal is expected to be worth north of $NZ400 million ($374 million).

Kinetic, which is backed by Canada’s OPTrust and local firm Infrastructure Capital Group, started out in Melbourne more than four decades ago and operates the SkyBus that runs between the Melbourne CBD and Tullamarine airport. This deal will cement its position as the largest Australasian bus network operator.

Elsewhere, fundies are tipping that Ellume’s $600 million-plus IPO will go ahead this year despite the biotech sell-off, and we take a look at the shake-up happening inside OpenMarkets Group that led to the resignation of its CEO last week.

And John Wylie’s Tanarra has teamed up with Allegro Funds to buy up the debt in COVID-19-affected Camp Australia.

Happy reading,

Yolanda Redrup, Sarah Thompson and Kanika Sood
Street Talk Editors