Go-Ahead Group PLC on Monday said it has received two takeover proposals at terms it ‘would be minded to recommend’ should a firm offer materialise.

Go-Ahead shares were 20% higher at 1,450.00 pence each in London on Monday morning, giving it a market capitalisation of above £620 million.

The Newcastle, England-based public transport operator said it has received a takeover proposal from Sydney-listed transport Kelsian Group Ltd and another from a consortium consisting of Kinetic Holding Co Pty Ltd and Globalvia Inversiones SAU.

Kinetic is a bus operator in Australia and New Zealand, while Globalvia is a Madrid-based transport infrastructure firm.

Kelsian operates transport services in the UK, Singapore and Australia. In May, Kelsian sold its Lea Interchange depot in east London to Stagecoach Group PLC for £20 million.

Both approaches were unsolicited.

‘The most recent revised proposals received from each of Kelsian and the consortium are both at a level which, should a firm offer be made, the board of Go-Ahead would be minded to recommend such a firm offer to Go-Ahead shareholders, subject to the agreement of other customary terms and conditions. Accordingly, both parties have been given access to undertake confirmatory due diligence,’ Go-Ahead said.

The UK transport sector has been the target of takeover interest of late. In May, Pan-European Infrastructure III SCSp, an infrastructure fund managed by DWS Infrastructure, declared its acquisition of Stagecoach Group PLC unconditional. Stagecoach had backed out of an all-share merger with National Express Group PLC.

Meanwhile, a third UK peer, FirstGroup PLC, also has received an approach.

On Thursday last week, it said it rejected a possible takeover offer from I Squared Capital Advisors (UK) LLP, saying the firm cash component undervalues the company and the contingent component doesn’t give shareholders enough certainty.

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