The planned $15 million sale of the SeaLink Rottnest ferry service to the owner of the competing Rottnest Express service has been cancelled after coming under ACCC scrutiny.
ASX-listed Kelsian Group announced six months ago it had agreed to sell the SeaLink service to private equity group Journey Beyond, which has a diverse portfolio of tourism assets including Rottnest Express.
The combination of the two ferry services would have given Journey Beyond an estimated 80 per cent market share.
Its only competitor would have been Hillarys-based Rottnest Fast Ferries, which focuses on servicing Perth’s northern suburbs.
Kelsian said today that the SeaLink service would not be sold but it will proceed with the sale of other tourism assets to Journey Beyond for $145 million.
The latter sale remains subject to approval from the Australian Competition and Consumer Commission and the Foreign Investment Review Board.
“Having removed SeaLink Rottnest from the transaction perimeter, we are confident we have a compelling case for ACCC approval of the remaining tourism portfolio transaction,” Kelsian Group CEO Graeme Legh said.
“We continue to expect the sale to complete in 1HFY27.”
Having been forced to keep SeaLink, Mr Leigh talked up its value.
“SeaLink Rottnest is a profitable standalone, commuter ferry business with a strong brand,” he said.
“Kelsian intends to continue to operate SeaLink Rottnest alongside its other marine ferry operations across Australia, including the Transperth commuter ferry operation in Western Australia, which was not part of the original Tourism Portfolio sale.”
The assets to be sold by Kelsian include Captain Cook cruises on the Swan River plus Swan Valley bus tours and a function centre in the CBD.
In other states, Kelsian is selling the Kingfisher Bay and K’gari Beach Resorts, Murray Princess Cruising and Adelaide Sightseeing tours.
The sale of the tourism portfolio is designed to strengthen Kelsian’s balance sheet and sharpens its focus on contracted bus, coach and marine services in Australia and internationally.
In WA, it is a major operator of Transperth buses and has acquired the Go West and Horisons West bus services, which target the resources and education sectors.
