Hong Kong’s Citybus, New World First Bus sold for HK$3.2 billion to consortium led by private equity fund
- NWS Holdings says objective of the sale is to ‘keep jobs, keep payroll, and keep benefits’ as the coronavirus crisis hammers business
- Consortium is led by private equity fund Templewater Bravo, which will own more than 90 per cent of the bus firms after the acquisition
NWS, a unit of Hong Kong property developer New World Development, sold the firms to a consortium led by private equity fund Templewater Bravo in a cash deal, according to a filing with the Hong Kong stock exchange after trading hours on Friday.
Templewater Bravo will own more than 90 per cent of Citybus and New World First Bus after the acquisition.
Last year, the bus companies suffered a 95 per cent plunge in profit after tax, to HK$8.9 million, even before the Covid-19 pandemic dragged down ridership. In 2018, its profit was HK$162.8 million (US$21 million).
NWS will record a HK$700 million (US$90.3 million) impairment loss as a result of the sale.
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Templewater Bravo has pledged to ensure it is “business as usual” at the bus companies despite the difficult operating environment, according to an NWS press statement.
