Comfort Delgro to buy out Aussie subsidiary
ComfortDelGro said yesterday that it has signed an agreement with Cabcharge Australia to acquire the remaining 49 per cent stake in ComfortDelGro Cabcharge (CDC) for A$186 million (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).
It will be financed by internal funds and bank borrowings, and the agreement is subject to approval from the Australian Foreign Investment Review Board. The acquisition is expected to be completed in the first quarter of next year.
CDC was formed in 2005 after the acquisition of the Westbus Group by ComfortDelGro and Cabcharge.
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 workers.
Besides the bus operations, ComfortDelGro also operates taxi services in Perth, Western Australia.