ComfortDelGro grabs remaining 49% stake in Aussie subsidiary for $196M

Cabcharge is now a wholly-owned subsidiary.

ComfortDelGro Corporation entered into a Share Sale Agreement with Cabcharge Australia Limited to acquire the remaining 49% stake in ComfortDelGro Cabcharge Pty Ltd (CDC) for AUD186M (approximately $196M), according to a media release by the company.

The agreement, which is still subject to approval from the Australian Foreign Investment Review Board, is based on a valuation of 4.6 times 2015 EBITDA of CDC and will be financed by a combination of internal funds and bank borrowings.

With a combined fleet of 1,712 buses and a total staff strength of about 2,300, CDC has grown to become one of the largest private bus operators in New South Wales and Victoria, operating contract scheduled bus, school bus, private contract and charter bus services.

Mr Kua Hong Pak, ComfortDelGro managing director and Group CEO, said, “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.”