Herbert Smith Freehills Kramer advises on sale of majority stake in Kinetic to TPG

Herbert Smith Freehills Kramer (HSF Kramer) has advised Australian bus operator Kinetic and its management team on the sale of a 70 percent stake in the business to US alternative asset management firm TPG.

Kinetic has grown to become the largest bus operator in Australia and New Zealand, with operations that span across the UK, Europe and Singapore. It is a leading operator of zero-emission transport and infrastructure in its major markets, operating more than 300 electric buses and 11 electric depots across Australasia, and 1,500 electric buses in the UK through its majority-owned subsidiary, Go Ahead Group.

TPG has acquired the stake in Kinetic through its TPG Rise Climate platform, led by its TPG Rise Climate Transition Infrastructure strategy. TPG Rise Climate is one of the world’s largest private markets climate investing platforms and brings to Kinetic deep expertise in electrification and green mobility.

The investment from TPG marks an important step in Kinetic’s journey and leadership in decarbonised transportation and supporting zero-emission transport infrastructure across Australia, New Zealand, and internationally.

The HSF Kramer team was led by private equity partner Andrew Clyne, with support from senior associate Marijana Banovac and solicitors Tess Meaden, Finn Edwards and Mudit Dhami.

The HSF Kramer London team comprised senior associate Lucinda Grant and associate Rikesh Murva, and was led by partner Stephen Wilkinson.

Andrew Clyne said, “We are proud to have advised Kinetic on this important investment, which will help the company strengthen its commitment to building a net zero transport platform globally.”

As part of TPG acquiring its stake in Kinetic, existing investor OPTrust will exit its shareholding, while Foresight Group will retain a 30 per cent stake. The investment from TPG is subject to regulatory approvals and is expected to complete over the coming months.