THE AUSTRALIAN-SPANISH consortium that intends to buy UKlisted Go-Ahead for £650m yesterday said it was not worried about a bidding war with the group's other suitor, tour operator Kelsian.

"Our offer presents a very strong premium," Michael Sewards, the chief executive of one of the consortium's two partners, Australian bus operator Kinetic, told City A.M.

"We think now more than ever this presents a very compelling case and we're confident it will be approved."

Made on Monday afternoon, the 1,450p per share full-cash offer represents a premium of 48.5 per cent to Go-Ahead's closing price on 25 May as well as a 77.6 per cent increase on the group's average price for the period ended 10 June.

The consortium's bid was accepted on Monday by the bus group's board, who considered it "fair and reasonable" and recommended it to shareholders.

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CONTINUED FROM PAGE 1 "This has been a number one target as it is our absolutely preferred business in the UK and has been for some time," Sewards told City A.M.

Talking about the future, Kinetic's boss said the consortium - made up of Kinetic and Spanish transport infrastructure group Globalvia Inversiones - was focused on delivering further growth in both the UK and other markets and was not planning any cuts.

"We are looking to retain the existing business as a standalone business, with all team members to be retained as well as the chair and chief executive," said Sewards.

"We think [our approach] provides a lot of security for the people in the business but also for the suppliers and manufacturers who provide services to Go-Ahead."

The company said on Monday it had also received an approach from Kelsian Group.

Kelsian said yesterday that it could still make a bid for Go- Ahead, and urged shareholders to take no action regarding the Kinetic bid.

(c) 2022 City A.M., source Newspaper