One firm has acted on a major marine transport and tourism deal.
Kain C+C has advised South Australian based SeaLink Travel Group on its acquisition of Queensland’s Transit Systems Marine and $56.9m capital raising, making it Australia’s largest marine transport and tourism business.
The $125m acquisition adds 33 vessels to SeaLink’s fleet and adding further passenger and commercial ferry routes.
“It will significantly increase SeaLink’s scale and broaden its expertise, positioning SeaLink to compete for new business opportunities in Australia and overseas,” said lead director on the deal, James Burchnall.
Following the successful $40m placement of new shares, SeaLink will offer shareholders the opportunity to participate in a SPP, raising a further $16.9m.
“For Kain C+C this is a great transaction to be involved in as it demonstrates the strength of our public company transaction experience,” Burchnall said.
“On completion of this transaction, SeaLink will become the largest marine tourism and transport company in Australia, with a market capitalisation in excess of $250 million.”
Burchnall added that the deal is part of a major expansion strategy by SeaLink.
“The acquisition of Transit Systems Marine will provide a new growth engine for SeaLink and will significantly increase its scale and broaden its expertise, positioning SeaLink to compete for large scale marine transport opportunities in Australia and overseas.”
He said that Adelaide legal company Kain C+C expects to see further movement in the tourism industry over the next 12 months.
“We are seeing very strong support from institutional investors for tourism businesses,” he said.
“In our view, this support is likely to translate into further opportunities for investment and acquisition activity this year.”
