Comfortdelgro bids A$38 mln for Swan Taxis takeover

One of Singapore’s top land transport companies by market value aims to extend its presence in Australia where it already operates private buses in New South Wales and Victoria.

Comfortdelgro Corporation has made a A$38.8 million (S$46.8 million) takeover bid for Swan Taxis Limited, the largest provider of taxi services in the Perth metropolitan market with 1,667 taxis or a 91% share of the market. If successful, the move will further extend ComfortDelGro’s presence in Australia where it is already one of the largest private bus operators in New South Wales and Victoria, according to a Comfortdelgro announcement.

Swan Taxis, which has been in existence since 1928, was restructured to an unlisted public company in 2007. Besides operating in Perth, Swan Taxis also provides bureau despatch services in Karratha, a town located 1,500 km north of Perth and Mandurah, the second largest city in Western Australia located 72 km south of Perth.

For the 12 months ended 30 June 2009, Swan Taxis turned in a revenue of A$13.3 million and profit before tax of A$4.6 million.

With the population of Perth expected to continue to grow, the prospects for the taxi industry in the city are bright.

Mr Kua Hong Pak, ComfortDelGro Managing Director and Group CEO, said: “Swan is the leading taxi operator in Western Australia with an advanced despatch system and a strong customer base. We are excited about the prospects that this proposed acquisition offers us – a geographical expansion and extension of another of our core businesses in Australia.”