ComfortDelGro Corporation said on Wednesday (Dec 21)
that it has signed an agreement with Cabcharge Australia Ltd to
acquire the remaining 49 per cent stake in ComfortDelGro Cabcharge
Pty Ltd (CDC) for A$186 million (about S$196 million).
The acquisition is based on a valuation of 4.6 times
CDC's 2015 EBITDA (earnings before interest, tax, depreciation and
amortisation) and will be financed by a combination of internal
funds and bank borrowings.
The agreement is subject to approval from the
Australian Foreign Investment Review Board.
CDC was formed in 2005 following the acquisition of the
Westbus Group by ComfortDelGro and Cabcharge. Since then, the
company has grown to become one of the largest private bus
operators in New South Wales and Victoria, said ComfortDelGro. CDC
has a combined fleet of 1,712 buses and employs 2,300 staff.
Said Mr Kua Hong Pak, ComfortDelGro Managing director
and group CEO: "The acquisition of the remaining stake in CDC
reflects our commitment to the Australian market and our continued
confidence in its growth potential. Through a wholly-owned
subsidiary, we are better able to seek new opportunities to grow
the business."
Subject to regulatory approval, the acquisition is
expected to be completed in the first quarter of 2017.
Besides the bus operations in New South Wales and
Victoria, ComfortDelGro also operates taxi services in Perth,
Western Australia.
ST