Fuel hike lifts investor interest in bus companies

Bancorp New Zealand today succeeded where Infratil had failed - by purchasing 74 per cent of Mana Coach Services.

Bus companies have come under added interest from investors as rising fuel costs have driven up customer numbers, Hamilton Hindin Greene broker Grant Williamson said.

"Rising fuel costs also hit the buses but the increase in numbers on the buses more than counters for that."

Last month, New Zealand Bus Limited, a subsidiary of Infratil, was found guilty of breaching the Commerce Act in attempting to take over the Wellington bus company.

In the High Court at Wellington, Justice Forrie Miller ruled NZ Bus could not acquire the 74 per cent share of Mana that it did not already own, because it would probably have lessened competition in the Wellington bus market.

Mana employs around 160 staff and has both bus and coach services throughout Newlands, Johnsonville, Plimmerton and Wellington.

Bancorp managing director Craig Brownie said the acquisition was a long term strategic investment in New Zealand infrastructure for the company Bancorp, "and we expect to see growth in this company moving forward".

The remaining 26 per cent of Mana remains owned by Infratil.

- NZPA