Pohutukawa Invests in GoBus

20 December 2007

Direct Capital has acquired a majority stake in GoBus. As a result Pohutukawa Private Equity has purchased an equity stake of 31.8% in Go-Bus for $4.6m.

The following is the press release.

Direct Capital has acquired a majority shareholding in GoBus Limited (‘GoBus’), a leading provider of public transport services in the Waikato region. Direct Capital’s investment has been completed from its DCPIII and Pohutukawa private equity funds.

Direct Capitals investment facilitates the replacement of a founding financial investor. Other founding shareholders and the Gobus management team will retain a significant investment in GoBus and continue to manage the company.

GoBus is a leading provider of public transport services in the Waikato region, providing urban, school and charter/tour bus services. Employing 460 people, the Company operates a fleet of 410 vehicles, 4 workshop facilities and 8 depots around the Waikato region.

The public transport sector has several positive fundamental drivers influencing growth including demographic trends, socio-behavioural trends, and increasing government support and investment. Significant further opportunities to grow the business have been identified.

Marcus Gerbich, GoBus Managing Director, commented that “Direct Capital provide us with an experienced local financial partner and sound platform from which to continue to grow the business.”

Ross George, Managing Director of Direct Capital said that “Go Bus is a strong regional business which leads its market and has a growing footprint. It is well placed to take advantage of the positive market fundamentals and increasing requirement for reliable and cost effective public transport services. We look forward to working with the Go Bus management and employees in the pursuit of the companies various growth initiatives and to continue the company’s success.”

For further information

GoBus – Craig Worth, Commercial Director and Press Spokesman, 07 846 1975

Direct Capital - Tony Batterton, Investment Director, 09 307 2562