Stagecoach agrees to buy Mana Coach Services

Stagecoach New Zealand has entered into a conditional agreement to boost its stake in Mana Coach Services.

Stagecoach already owns a 26 per cent holding in Mana, and has now agreed to buy the balance.

The deal is conditional on Commerce Commission approval and completion of due diligence, with settlement expected by April 3.

Mana Coach Services is a family owned and managed business that operates their self-named coach line, plus Newlands Buses.

Mana Coach Services operates commuter and passenger bus services within north Wellington, Porirua and the Kapiti coast, as well as a service to the Paraparaumu Tranz Metro rail line for Wellington city connections, and a coach charter business.

Stagecoach executive chairman Ross Martin said if the deal went unconditional, it would be business as usual for Mana and Newlands under existing management and staff.

Infrastructure investor Infratil bought Stagecoach New Zealand in November last year. The Mana purchase would be funded through existing Infratil bank debt facilities.

For the year ended March 31, Mana Coach Lines expected revenues of about $14 million and earnings before interest, tax, depreciation and amortisation of around $5 million.

- NZPA