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NWS divests stake in NWFB and Citybus, Hong Kong [free access]

August 22, 2020

A consortium of Templewater Bravo Holdings Limited (Templewater Bravo), Ascendal Group Limited (Ascendal), and Hans Energy Company Limited (Hans Energy) has acquired a stake in New World First Bus Services Limited (NWFB) and in Citybus Limited (Citybus), two bus operators in Hong Kong. The transaction has been valued at HKD3.20 billion. At completion, the acquirer will pay HKD2.49 billion out of the consideration. The remaining HKD0.7 billion will be paid in three instalments.

 

NWFB and Citybus were previously owned by NWS Holdings Limited (NWS). The divestment is in line with NWS’s strategy of optimising its business portfolio to achieve sustainable long-term growth, to ensure prudent risk management, and to provide value for all stakeholders.

 

Post-acquisition, Templewater Bravo will own 90.8 per cent of the shares. Ascendal and Hans Energy will collectively own 9.2 per cent of the shares. NWFB and Citybus operate over 1,700 buses on around 200 routes in Hong Kong. In 2019, these operators had a ridership of over 390 million passengers.

 

(1 HKD [Hong Kong Dollar] = 0.13 USD)