Keppel Infrastructure Trust (KIT) will divest a 24.62% stake in Ventura Motors to private investment funds managed by Samsung Asset Management for A$130 million ($109 million).
Ventura Motors is the largest bus service provider with a fleet of about 900 buses and 12 depots in the State of Victoria, Australia. The company operates about 530 routes out of Melbourne’s 1,200 routes and transports over 42 million people annually.
Following the transaction, KIT and Andrew Cornwall, the CEO of Ventura, will continue to hold stakes of 73.06% and 2.32% respectively.
KIT first acquired a 97.68% stake in Ventura in June 2024 for an enterprise value of A$600 million or $540 million at the time. The sale consideration will be about 19% higher than the amount paid by KIT at its acquisition for the relevant stake.
“As part of KIT’s value creation strategy, we are pleased to be able to realise the upside in Ventura’s value through the divestment of a partial stake to Samsung. This divestment, coupled with our earlier divestment of our 50% stake in Philippine Coastal Storage & Pipeline Corporation, both amounting to approximately $301 million, will bolster KIT’s financial strength and agility, and enhance KIT’s ability to capture further opportunities through strategic capital recycling,” says Kevin Neo, CEO of KIT’s manager.
He adds that Ventura has continued to deliver “market-leading performance” in metrics such as punctuality and reliability and that KIT is committed to working with Ventura to “strengthen and grow” the business over time.
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The transaction is expected to be completed in 3Q2025 and is subject to conditions and approvals from the relevant regulators and government authorities.
Units in KIT closed flat at 39.5 cents on June 10.
