Kelsian shares rise on divestment plans
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More news: Shares in Kelsian Group rose more than 4% to $2.68 in early trading after the bus and ferry operator said it is exploring divestment options for its portfolio of tourism assets to streamline its business and reduce debt.
The assets to be divested, which include its Fraser Island resorts, tours and ferry, and SeaLink properties in various states, collectively generated revenue of $160 million in FY24.
Kelsian Group planning to divest Australian tourism assets
The news: Bus and ferry operator Kelsian Group says it is exploring divestment options for a portfolio of Australian tourism assets to streamline its business and reduce debt.
The numbers: The assets to be divested include: its Fraser Island resorts, tours and ferry; SeaLink properties in Sydney Harbour, Western Australia, the Whitsundays, Tasmania and the Northern Territory; the Murray Princess; and Adelaide Sightseeing. The portfolio collectively generated revenue of $160 million in FY24, it said.
The context: Kelsian said the decision follows a portfolio review announced in October 2024, and the sale has the potential to release significant value for shareholders. It will only proceed with the sale if the value and terms are attractive and in the best interests of shareholders. The proceeds would be used to accelerate the reduction of debt and to selectively invest in attractive strategic growth investments.
“The board believes that streamlining the Australian portfolio will allow the business to focus more on its marine, bus and motorcoach transport businesses while lowering capital intensity and further increasing the stability of the group’s earnings base,” it said in a statement.
Kelsian, formerly called SeaLink Travel Group, in February reported a 29% drop in first-half net profit.
The source: ASX
