Kelsian mulls sale of Australian tourism portfolio
A portfolio of businesses, including tourism coach services in South Australia, could be sold by parent company Kelsian should it receive an attractive offer.
Kelsian told shareholders this week it was exploring divestment options for a portfolio of its Australian tourism assets to “streamline the business, reduce debt and improve shareholder value”.
The company, formerly known as SeaLink and one of the state’s top 100 companies as per the South Australian Business Index, said it would only sell the portfolio “if value and terms are attractive and determined to be in the best interests of shareholders”.
The Tourism Portfolio – which generated $160 million in revenue last financial year – includes its Adelaide Sightseeing business which operates bus tours to the Barossa, Hahndorf, Adelaide, Victor Harbor and on Kangaroo Island.
The company would retain its iconic ferry service that operates between Kangaroo Island and Cape Jervis if the sale goes through, as well as other ferry services across the country.
Kelsian said the divestment would allow it to focus more on its marine, bus and motorcoach transport businesses while lowering capital intensity and further increasing the stability of the group’s earnings base.
You might like
Proceeds would be used on accelerating the reduction of Kelsian’s debt. As of 31 December 2024, the company’s total debt was $933.2 million. It generated more than $1 billion of revenue in 1H25 and made almost $40 million in profit.
The company said it would also consider spending funds on “attractive strategic growth investments within Kelsian’s marine, bus and motorcoach transport business that align with strategy, and deliver against Kelsian’s capital management targets”.
“The management team has undertaken a comprehensive strategic portfolio review, and a sale of the Tourism Portfolio was assessed to be in the best interests of shareholders,” chair Fiona Hele said.
“The divestment of the Tourism Portfolio will see Kelsian emerge as a more infrastructure like, commuter and contacted business, allowing us to focus on delivering essential journeys through marine, bus and motorcoach transport.
Stay informed, daily
“Many of the continuing businesses are underpinned by defensive long-term government-backed service contracts, with cost base protection, generating even more predictable earnings and cashflows.”
She said the Tourism Portfolio to be divested included “several market leading centred businesses with established market positions and robust growth potential”.
“We believe this is an appropriate time to consider their ownership and explore opportunities for these businesses to continue to grow with a new owner,” Hele said.
The portfolio being considered for divestment includes:
Post-divestment, Kelsian would still own a large portfolio including marine businesses like the SeaLink Kangaroo Island ferry service, Gladstone Ferries, SeaLink South East Queensland, SeaLink North Queensland, Transperth ferry services and Brisbane River Ferries.
“All of which have greater similarity to the infrastructure like characteristics of the public bus and motorcoach passenger service businesses in both the Australian and International bus segments which are less sensitive to economic conditions,” Kelsian said.
Financial advisers Gresham Advisory Partners and Macquarie Capital have been appointed financial advisers to assist with the proposed divestment.
For Kelsian, the announcement comes after Clint Feuerherdt stepped down as managing director and group CEO.
Graeme Legh – currently CEO of Kelsian’s American division – assumed the role on Tuesday 1 April.
