ComfortDelGro unit inks deal with Guangzhou Transportation

It will now be Guangzhou Transportation ComfortDelGro Taxi.

According to an SGX release, ComfortDelGro Corporation Limited is pleased to announce that its wholly-owned subsidiary, Chengdu ComfortDelGro Taxi Co., Ltd, has entered into a joint venture with Guangzhou Transportation Group Co., Ltd to form Guangzhou Transportation ComfortDelGro Taxi Co., Ltd (“JVCo”).

The principal activity of the JVCo will be the provision of public taxi services. The JVCo is 50% owned by CCDGT and 50% owned by GTG.

The JVCo will have an initial registered capital of RMB10 million (approximately SGD1.956 million) and CCDGT will fund its share from its own funds.

GTG is a large state-owned enterprise and is ComfortDelGro’s current joint venture partner in Guangzhou Xin Tian Wei Transportation Development Co., Ltd.

The above transaction is not expected to have any material impact on the net tangible assets per share and the earnings per share of the ComfortDelGro Group for the financial year ending 31 December 2012.