Go-Ahead chief denies reports the UK’s largest rail operator is up for sale
Go-Ahead Group’s chief executive has denied reports that the UK’s largest rail operator could be up for sale as part of a wider sell-off by its pension fund owner.
The Sunday Times reported that the Canadian pension fund OPTrust had brought in advisers and was looking to offload public transport interests including Go-Ahead.
The report said the firm had hired investment bankers at RBC and Macquarie to explore a potential sale of those holdings.
However, a statement from the chief executives of Go Ahead Group and its Spanish and Australian owners said the reports were “misleading” and created an “incorrect impression” that the firm was for sale.
“Go-Ahead is not for sale. It remains an important and strategic business for its owners Kinetic and Globalvia which, as committed long-term shareholders, support its growth strategy.”
The new deal would fall a year and a half after the UK-listed transport giant was taken private in a £650m deal backed by a number of international pension funds, including OPTrust.
It was formerly listed on the London Stock Exchange but the take-private swoop saw it come under the ownership of the Australian bus operator Kinetic Group and Spain’s Globalvia. OPTrust co-owns Kinetic and holds a 40 per cent stake in Globalvia.
The sources said the company had initiated a strategic review but that it might not result in an auction.
The chief executive’s statement said: “As previously reported, OPTrust is undertaking a strategic review into its respective holdings in Kinetic and Globalvia, that may or may not result in the divestment of its stake in either business.
“This process has no impact on Go-Ahead’s strategy or day-to-day activities, which continue to focus on moving and connecting people to their communities across its bus and rail network.”
Labour has backed nationalising the country’s rail network and is set to outline more detailed plans soon.