London bus operator Go-Ahead Group PLC (LSE:GOG) is the latest publicly traded stock to receive a takeover approach as the domestic travel experiences a resurgence.
Go-Ahead's board confirmed that it had received separate unsolicited cash offers from Australian transport company Kelsian Group and a consortium of buyers including Australia-based bus company Kinetic and infrastructure provider Globalvia Inversiones.
The company said that after evaluating the trade offers with its financial adviser Rothschild, both Kelsian and the consortium submitted revised bids and would recommend a firm offer of the level submitted by the buyers.
Both potential bidders had started “confirmatory due diligence”, it added.
The company issued the market update this morning, noting “the recent movement in its share price” after its share price surged.
Go-Ahead, which had seen its share price rise 51% in the past six months, had been earmarked by analysts as one of a raft of other transport operators that could “become targets” for acquisitions, as the sector looks increasingly attractive to prospective buyers.
FirstGroup recently rejected a takeover offer from US private equity group I Squared Capital, while Stagecoach is being taken private by DWS Infrastructure having spurned a merger with National Express, which is also being tipped as a target for trade buyers.
Demand for domestic travel has rebounded, creating an appetite in the market to invest in transport operators that are now effectively contractors for the UK government with very predictable retruns.
Go-Ahead's shares, were trading 14.41% above Friday’s closing price, at 1,384p per share.