ADELAIDE: Kelsian Group (ASX: KLS), Australia’s largest integrated multi-modal transport provider, announced Wednesday its intention to explore the divestment of a portfolio of Australian tourism assets to streamline operations, reduce debt and enhance shareholder value.
The potential divestment includes assets such as K’gari (Fraser Island) resorts, tours and ferry services, SeaLink Sydney Harbour operations, Murray Princess cruises, Adelaide Sightseeing and several other regional tourism businesses. Collectively, these assets generated over $160 million in revenue in fiscal year 2024.
Kelsian said the move aligns with its strategy to focus on its core marine, bus and motorcoach transport businesses, which are supported by long-term government contracts and offer more stable earnings. Proceeds from any sale would be used to pay down debt and invest in growth opportunities within its transport divisions.
“This divestment will allow Kelsian to emerge as a more infrastructure-like, commuter-focused business,” said Chair Fiona Hele. She emphasized that the tourism assets being considered for sale are market-leading businesses with strong growth potential, making it an opportune time to explore new ownership.
The company has appointed financial advisers Gresham Advisory Partners and Macquarie Capital to assist with the process. Kelsian noted that any transaction would proceed only if terms are favorable to shareholders.
The announcement follows a portfolio review initiated in October 2024. Kelsian’s FY25 earnings guidance remains unchanged.
For more information, investors can contact Davina Gunn or Andrew Muir at [email protected]. Media inquiries should be directed to Katie Wilke of Square One PR.