Grenda selling

[National Link]

did anyone manage to be a passenger on a Grenda Bus at said 2PM and subsequently ride a service across the ownership change? Now that would be unique.

I jumped on the Grenda Hybrid on Rte 828 from Dandenong towards Hampton around 3:47pm on the day. Does that count?

[B7RLE]

I was working on a Grenda bus at the time does that count

[E.L.Wood]

It appears as if National Link was the first to ride a Ventura owned service while B7RLE worked through the change, who holds claim to be the last ATDB member to ride a Grenda owned service? What a claim to fame!
I can't remember too many(if any) ownership changes that happened during a trading day, most seem to happen from close of business.

[BluDART]

So it seems Ventura have been able to yet again assume control without complications in their typical takeover style, they seriously do operate a smooth business from a passenger view, I do wonder if Grenda services will now feature on their twitter account?

While searching on the net 'Ventura acquisition of Grendas' , I came across the company that contributed to the purchase that being Intermediate Capital(ICP), some kind of large european investment firm (this being their first investment in Aus) apparently they contributed 45% to the acquisition.

[system improver]

http://www.icgplc.com/news/press-releases/Ventura.aspx
http://www.4-traders.com/INTERMEDIATE-C ... -13973409/

[Peter1805]

Interesting.. If their investment of $155million is 45% of the total, that makes the total purchase price around $345million, a little bit less than has been reported to date.

Here is a definition of "mezzanine financing", for those interested:

http://www.investopedia.com/terms/m/mez ... ancing.asp

Edited to add: See posts below... it appears that the above calculation is based on an incorrect assumption.

[system improver]

Interesting.. If their investment of $155million is 45% of the total, that makes the total purchase price around $345million, a little bit less than has been reported to date...

I think the 45% refers to ICG's Asia Pacific 2008 Fund which they say is now 45% invested. Presumably, the Ventura investment forms a very large part of it, but not all of it.

[Peter1805]

Interesting.. If their investment of $155million is 45% of the total, that makes the total purchase price around $345million, a little bit less than has been reported to date...

I think the 45% refers to ICG's Asia Pacific 2008 Fund which they say is now 45% invested. Presumably, the Ventura investment forms a very large part of it, but not all of it.

Yes, I've just re-read it and I think you're correct. I read it in a bit of a hurry earlier and misinterpreted it.

That means the calculation I've done above is probably way off-beam..

[system improver]

...That means the calculation I've done above is probably way off-beam..

Perhaps not that way off, although it would depend on the size of the Asia Pacific 2008 Fund. The story tells us that ICG provided $155 million as part of the Grenda purchase financing arrangements. If the "media" estimated purchase figure is correct, i.e. about $400 million, that means ICG's share would be 39%. Without doubt, while ICG may also be providing "mezzanine" financing to others, Ventura (so far) is probably their largest customer for the Asia Pacific 2008 Fund. There is little doubt that the cost of money through this arrangement is significantly higher than through (say) a merchant bank. I must admit, given the precarious state of some loans around the world, if I was an Australian bank, I would have been falling over myself to finance the acquisition. Remember, Grenda Transit have a $500 million contract with the DoT to provide route services. That's a pretty good guaranteed cash flow, most of which will not be subject to competitive tender any time soon.

[Craig]

Meet Victoria's best boss who gave his loyal staff a $15m bonus

by: Elissa Doherty
From:Herald Sun
February 01, 201212:00AM


Ken Grenda, 79, yesterday, with sons Geoff and Scott and staff. Picture: Craig Borrow Herald Sun

A MELBOURNE boss has stunned his staff by giving them a staggering $15 million gift -- the ultimate pay-off for their hard work and loyalty.

Workers at bus company Grenda couldn't believe their good fortune when surprise bonuses averaging $8500 were paid into their accounts - with some staff receiving as much as $30,000.

Family-owned Grenda Corporation recently sold off its transit operations after 66 years and decided to pour a chunk of the profits into the remarkable thank-you gesture.

Patriarch Ken Grenda, 79, and sons Geoff and Scott, have been dubbed Australia's most generous bosses after rewarding 1800 staff, from drivers to senior executives, for contributing to the company's success.

Some wept while others rang their banks thinking there might be an error.

But Mr Grenda, the major shareholder, modestly played down the "best boss" moniker, instead paying tribute to his staff.



"A business is only as good as its people, and our people are fantastic," he said. "This is to recognise that. We have had people here who are second generation, and one fellow in the same job for 52 years.

"We have grown from just four bus routes in Dandenong in 1945 to operating 1300 buses in Melbourne, Adelaide and Perth. You only get there if you have good people."

The family has been swamped with about 100 emails and countless phone calls of thanks from staff, who will all keep their jobs under the new owners.

Mr Grenda, who was awarded an AM for his services to the bus industry, said the gratitude was humbling.

"The response has been pretty fantastic," he said.

"People said all sorts of things. One said they had a huge amount of bills and you have suddenly got me out of a hole."

The bonuses were paid in various amounts based on years of service and position.

Staff who had worked with Grenda for three months or more pocketed anywhere from about $1000 to $30,000 before tax.

The company last year sold its transit operations to Melbourne operator Ventura for about $400 million.

Grenda is also Australia's largest bus maker, building about 600 buses a year.

It expects to settle on the sale of the bus building business Volgren to a Brazilian company tomorrow.

Grenda bus driver Heath, with the company for just 10 months, received less than the average bonus, but was dumbfounded by his windfall of around $850.

"Some employees were calling their banks assuming it was an error," he said. "Good bosses are hard to find and Ken was a very good boss, one of a kind."


Ken Grenda Herald Sun

dohertye@heraldsun.com.au

Our best bosses
by: Editorial
From:Herald Sun
February 01, 201212:00AM


Ken Grenda with sons Geoff and Scott. Picture: Craig Borrow Herald Sun


KEN Grenda and his two sons might be the best bosses in Australia. That's what their employees are saying after they found bonuses of thousands of dollars in their pay cheques.

Mr Grenda and sons Geoff and Scott sold the company and are giving $15 million to the staff.

"A business is only as good as its people and our people are fantastic," 79-year-old Mr Grenda, the company's major shareholder, told the Herald Sun.

Grenda buses started in Dandenong and are now on routes across the country. The company also builds buses and has built one of the nation's most loyal workforces. Their unexpected reward reduced some of them to tears while others rang their bank to ask if a mistake had been made in their account. The bonuses ranged from $1000 to $30,000.

$15 Million is a truly amazing amount to give away! Great to see him giving back to those who helped build his empire!

I wonder if this extended to Volgren empolyees as well, given Grenda family still have a 25% share in the company.

Kind Regards


Craig

[B7RLE]

It's on the front page of today's sun

[scott]

Scott Grenda is on Ross and John on 3AW at the moment.

[busrider]

Geoff Grenda was on the Today Show being interviewed by Karl Stefanovic about it, and the sale price of the company was mentioned as being approximately $400 million...

[tranzitjim]

MEDIA ALERT - INTERVIEW DUE SHORTLY

Neil Mitchel is going to interview Ken Grenda some time this morning.

He is on 3AW, which is 693AM or you can get him anywhere via www.3aw.com.au

Neil did not say when Ken will be on, but Neils show goes until 12 Noon. His show has just started at 8:30

[tonyw]

Undoubtedly the most amazing gesture by an organisation to its employees that I can recall in my lifetime.

[tranzitjim]

Does Grendas have 25% share in just Volgren or 25% just in VenGren OR would that be 25% in both?

[system improver]

Volgren.

And I agree with tonyw.

[Alex on the Bus]

And in unrelated news, Harvey Norman stores across Melbourne's south-east experienced runs on their largest flat-screen television models...

[MAN 16.242]

MEDIA ALERT - INTERVIEW DUE SHORTLY

Neil Mitchel is going to interview Ken Grenda some time this morning.

He is on 3AW, which is 693AM or you can get him anywhere via http://www.3aw.com.au

Neil did not say when Ken will be on, but Neils show goes until 12 Noon. His show has just started at 8:30

For those that missed it.
You can listen to it online.
http://www.3aw.com.au/blogs/breaking-ne ... 1qs3c.html

[tonyw]

I just listened to that interview. That man, that family are absolute legends. What a refreshing attitude in this age of unprecedented corporate greed and excess.

[Andrew]

like.JPG (7.27 KiB) Viewed 549 times

[BroadGauge]

And in unrelated news, Harvey Norman stores across Melbourne's south-east experienced runs on their largest flat-screen television models...

Hahaha, that's a bit cruel. I'd think their staff would be smarter than the average bogan who got $900 from Kevin Rudd and spent $500 on a flat screen TV, and the remaining $400 on the pokies.

I think with these kind of actions what they really help with is increasing staff morale, one thing that seems to not be cared for a lot in the corporate world of today.

[boxythingy]

I just listened to that interview. That man, that family are absolute legends. What a refreshing attitude in this age of unprecedented corporate greed and excess.

Agreed. Bravo!

[Simes]

I heard one person received $100k! An extremely good gesture by the departing family

[Tas Bus Nut]

I can just imagine, tomorrow, companies (bus or not) will have the Herald's headline ENLARGED and posted around the workplace (in the faint hope) As mentioned above, it is exceptional that the owners of the company have acknowledged the commitment by their employees, after all, THEY are the ones that have helped grow the company to what it is/was. Obviously, Ken Grenda (and family) is one of the gentlemen in business, unfortunately, they are few and far between nowdays. Even the comment in the paper, that Ken comes into the depot and greets everyone BY THEIR NAME THAT alone goes along way. To the Grendas, I wish you all the best in your "retirement" and tip my hat to you.