After 27 years, Bravo Transport sells Octopus stake to MTR Corporation

Bravo Transport has sold its stake of about 2.78 million shares in Octopus Holdings to MTR Corporation. In a statement, the company said the pandemic and the current wave relating to the Omicron variant continued to put intense pressure on its business. As Hongkongers can hardly travel and only a handful of international visitors coming to the city, Bravo Transport said the high revenue drivers from the Hong Kong airport and cross-border routes, which have a cross-subsidising effect on local routes, have suffered the most significant impact.

"It is indeed a sad but necessary day given the current circumstances. We've had an amazing journey with the Octopus over the past 27 years and we are proud to have been one of the pioneers of electronic payment systems in Hong Kong. Although our direct involvement in Octopus will soon come to an end, it is still one of the most popular payment methods for our customers and we will continue our strong working relationship going forward," said a spokesman of Bravo Transport.

Bravo Transport said it was losing about HK$25 million a month, adding that it had an accumulated loss of about HK$379 million. Bravo Transport is the parent company of Citybus and New World First Bus in Hong Kong. The company added that despite selling stakes in Octopus Holdings, its buses will continue to accept payment made by Octopus. In addition, the company also currently allows passengers to use contactless credit cards, mobile payments and multiple transit QR codes last year.

After the transaction, MTR Corporation said it will hold about 64% of Octopus Holdings shares, an increase of about 6.6 percentage points from 57.4% before the transaction. Bravo Transport's remaining stake of about 0.6 million shares in Octopus will be sold to another company. It did not tell the identity of the buyer.

“We are confident in the business prospects of Octopus Holdings as Octopus remains the most popular means of electronic payment in Hong Kong. While the challenges from emerging operators offering different modes of electronic payment cannot be underestimated, Octopus Holdings has been making efforts since the launch of Octopus in 1997 to expand its service into different facets of our daily lives as well as its presence in different parts of the world, and its achievements are evident," said Jacob Kam, CEO of MTR Corporation.

“The acquisition, however, is more than a promising investment for the Corporation, it also means a closer business relationship between MTR and OHL. While the Corporation will continue to explore opportunities for cooperation with different payment system operators, it expects OHL, with its high popularity in Hong Kong, to keep playing a major role in the future development of the fare collection system," Kam added.

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