Citibus Limited - Sale of Assets

The board of Citibus Limited has entered into a conditional agreement to sell the assets of Citibus and the business of Citibus.

The purchaser of the business is Invercargill Passenger Transport Limited (trading in Dunedin as Dunedin Passenger Transport), a long-established bus transport operator in not only Dunedin but the wider South Island. Both parties have undertaken to do their best to satisfy the conditions within the contract and work towards a seamless transition that will have no impact on the regular users of bus services in Dunedin. It is anticipated that settlement of the contract may occur before the end of DCHL’s financial year on 30 June 2011.

Importantly Dunedin Passenger Transport Limited has agreed to make offers of employment to all the existing staff of Citibus Limited.

The people of Dunedin should expect to continue to see the blue and gold buses operating the current timetables on existing routes as normal under the continued regulation of the Otago Regional Council.

The board of Dunedin City Holdings Limited has, on an ongoing basis, a wide range of investment opportunities available to it. As a matter of overall strategic direction, board members are of the view that they could achieve a greater return on their overall investment by withdrawing an investment from Citibus Limited and placing it elsewhere within the other businesses of their group.