Kelsian Group (ASX:KLS) is selling East London bus operation for £20m – The Market Herald

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  • Tourism and bus company Kelsian Group (KLS) agrees to sell its bus business in east London to Stagecoach for £20m ($35m AUD)
  • Under the agreement, the company will divest 11 route contracts, approximately 500 bus and depot employees and the Lea Interchange depot site lease.
  • The purchase price will see £10m be paid at the end of the deal and a further £1m paid per year for 10 years
  • Finalization of the deal is expected next month
  • KLS is up 1.08% and trading at $7.51 per share as of 3:48 p.m. AEST

Australia’s largest land and sea transport service provider, Kelsian Gorup (KLS), has agreed to sell its bus operations in east London to Stagecoach for £20m ($35m AUD) .

Under the agreement, the company will divest 11 route contracts, approximately 500 bus and depot employees, the Lea Interchange depot site lease and operating assets for associated bus operations.

The purchase price will see £10m paid at the end of the deal and a further £1m paid annually for 10 years.

“Completing the transaction will be another major step in repositioning Kelsian in the important UK transport market, which will provide a strategic platform for potential expansion opportunities in the UK and Europe,” said the society.

Kelsian will retain a stake in the London bus market with a 12.5% ​​stake in joint venture RATP Dev Transit London and a 100% stake in the Westbourne Park bus depot.

Completion of the transaction is expected next month.

On the market, KLS shares rose 1.08% and traded at $7.51 per share as of 3:48 p.m. AEST.