AUSTRALIA: Keolis Group has signed an agreement to buy Downer’s 49% stake in the Keolis Downer public transport operating joint venture, which will be rebranded as Keolis.
Keolis Downer was formed in 2009 and now provides light rail and bus services across Australia.
Downer said the divestment forms part of a strategy to narrow its focus on markets that are ‘aligned to core capabilities and growth opportunities’. It does not impact Downer’s rolling stock maintenance business, which is ‘an important growth area for Downer’s Rail & Transit Systems business going forward’.
The sale price represents an enterprise value of A$132m. The transaction is expected to be completed by late-2025, subject to Foreign Investment Review Board approval and other customary conditions, with Downer to receive cash proceeds subject to customary completion adjustments including for net debt, retentions and any pre-completion dividends.
Keolis Group said it was present in 13 countries and committed to investing in the Australian market. ‘After having partnered with Downer for 15 years and successfully grown the business to become a leading multimodal public transport operator in Australia, we have agreed to adopt a different strategy moving forward by Keolis becoming the sole shareholder of our Australian business’, said Keolis Group International CEO Laurence Broseta on July 1. ‘This will allow us agility to build new partnerships based on business opportunities and projects. With our knowledge of the local market and our extensive international footprint, now is the right time to change our commercial approach.’
Keolis Downer CEO Leila Frances said ’this is an exciting opportunity for us to maintain our focus on effective partnerships with local transport authorities to deliver positive passenger outcomes and expand our local footprint’.
- David Franks has been appointed CEO of Keolis Downer with effect from September 1, succeeding Leila Frances who has been interim CEO since March when Julien Dehornoy left to join UK infrastructure manager Network Rail. Franks began his career with British Rail, was CEO of Keolis Downer in 2018-23 and since 2024 has been Managing Director at Keolis MHI in Dubai.
