• News
  • SeaLink enters binding joint venture agreement for West London bus operations

SeaLink enters binding joint venture agreement for West London bus operations

Thursday 23 September 2021

SeaLink Travel Group Limited (ASX:SLK) (“SeaLink”) advises that today it has entered into binding agreements (subject to certain conditions precedent) (“Transaction”) to form an incorporated joint venture with RATP Dev UK Ltd (“RATP Dev UK”), to be called RATP Dev London Transit Ltd (“RDLT”). The scope of the Transaction relates to SeaLink’s current West London public bus transport service operations conducted by its wholly owned subsidiary Tower Transit Operations Ltd (“TTOL”). The Westbourne Park London TTOL bus operations and those of London United Busways Limited and London Sovereign Limited are proposed to be acquired by RDLT on completion of the Transaction, with TTOL’s immediate parent Tower Transit Ltd then holding a 12.5% interest in RDLT (the joint venture company).

The Transaction includes the following:

  • Divesting contracts, staff and operating assets associated with the Westbourne Park London bus transport operations into the new joint venture, except the freehold Westbourne Park property which will be sub-leased to RDLT for a term of up to 40 years;
  • At completion of the Transaction, SeaLink will contribute net assets of around £500,000 including its interests in TTOL contracts for eight London routes for bus services operated out of the Westbourne Park depot in exchange for the initial 12.5% interest in the joint venture company;
  • SeaLink to have representation on the RDLT Board; and
  • Co-branding of the joint venture assets.

Management, staff and assets associated with TTOL London operations at Lea Interchange (currently operating ten routes with two more awarded) are not included in the initial operations to be transferred into the RDLT joint venture and options for this asset are still being analysed, with an outcome expected in a similar time frame to the completion of the Transaction.

The Transaction is targeted for completion in December 2021. Completion of the Transaction is subject to certain conditions precedent including:

  • Third party customer consents from Transport for London; • Grant of necessary operating licences and consents from relevant traffic regulatory authorities;
  • Consents for transfer and leasing of relevant property rights required to effect the Transaction and for RDLT to undertake the proposed operations at the relevant properties following completion;
  • Financier consents to novation of existing bus leasing and financing arrangements to RDLT and establishing new corporate facilities for RDLT; and
  • SeaLink financier consents for the restructure of its interests and assets as a result of the Transaction.

Following completion of the Transaction, other than indemnities proportional to its proposed 12.5% interest in the joint venture in favour of RATP Dev group companies who are responsible for RDLT financing and performance arrangements, the joint venture will operate on a ‘standalone’ basis and SeaLink will have no obligations to make further capital contribution to RDLT.

About RATP Dev

Dev Founded in 2002, RATP Dev operates and maintains urban transportation systems in 13 countries on four continents (Egypt, the United Kingdom, France, Italy, Switzerland, Algeria, Morocco, South Africa, Saudi Arabia, Qatar, China, the Philippines, and the United States of America). With more than 1.5 billion passengers travelling on its networks every year, RATP Dev demonstrates every day its extensive and renowned expertise in a wide range of mobility services, ranging from rail, regional express rail, tramway, to bus, cable car, and sightseeing activities. RATP Dev leverages in France, outside of Paris, and across international markets the technical expertise and experience of the RATP Dev group, the leader in driverless and tramway operations and operator of the Paris network, one of the largest public transportation networks in the world. For more information see : www.ratpdev.com

In London, RATP Dev UK employs over 3,500 valued team members transporting 250 million passengers each year around the capital. It operates 1,100 buses on over 100 routes from 10 garages located in West London. By 2022, 24% of the RATP Dev UK London fleet will be electric with the electrification of 6 of its garages operating 13 electric routes.

Authorised for release by the Mr Clinton Feuerherdt, Group CEO SeaLink Travel Group Limited

Further information

For further information, please contact:
Clint Feuerherdt, Group Chief Executive Officer, +61 8 8202 8659
Andrew Muir, Chief Financial Officer, +61 8 8202 8693

About SeaLink Travel Group Limited (ASX:SLK)

SeaLink Travel Group is Australia’s largest integrated land and marine, tourism and public transport service provider with established international operations in London and Singapore. It is one of Australia’s most experienced and diverse multi-modal transport businesses, boasting performance-driven capabilities across ferry, bus and light rail. SeaLink is made up of Australian marine and tourism operations, and Transit Systems’ Australian public bus, light rail and international public bus transport operations. SeaLink moved more than 207 million customers in FY2021, has approximately 9,000 employees and operates approximately 3,800 buses, 117 vessels and 24 light rail vehicles.