Kelsian abandons pursuit of Go-Ahead

21st Jul 2022 08:37

(Sharecast News) - Australian bus and ferry services group Kelsian has abandoned its pursuit of London-listed transport operator Go-Ahead, pinning the blame on market volatility.

Kelsian said on Thursday that it no longer intends to bid for Go-Ahead, as recent Australian equity markets have been volatile and external events have adversely impacted its share price since 14 June, when it first announced that it was considering making an offer.

"The Kelsian board consider that Australian equity market conditions at this time do not enable Kelsian to pursue a possible transaction for Go-Ahead despite the long-term strategic and economic rationale of the potential transaction for Kelsian," it said.

With Kelsian out of the running, Kinetic - Australia and New Zealand's largest bus network - and Spanish transport firm Globalvia Inversiones are now the sole interested party.

At 0835 BST, Go-Ahead shares were down 2.6% at 1,490p.