ComfortDelGro - Maybank Research 2024-03-30: Growing Overseas Footprint

• ComfortDelGro (SGX:C52) has secured new contracts worth GBP422m (S$720m), to run four public bus packages in the UK for five years.

Overseas expansion gains traction

• Earlier, ComfortDelGro also announced that an overwhelming 97.3% of A2B shareholders voted in favour of its proposed acquisition of A2B – a leading supplier of personal transportation services & solutions in Australia.

Wins contracts to operate bus services in Manchester

• - Read this at SGinvestors.io -
• - Read this at SGinvestors.io -

Acquires UK-based ground management & specialist

• Looking ahead, ComfortDelGro will continue to seek other new bus franchise opportunities in the Northwest and across the UK. In Feb this year, it also expanded into adjacent businesses with the acquisition of UK-based CMAC Group for GBP80.2m.
• CMAC is a ground transport management & accommodation network specialist that handles travel disruptions for ~3m travellers annually.
• As a key player in providing wide-ranging emergency passenger transport services to businesses, CMAC is complementary to ComfortDelGro’s operations in the UK/Europe, and expands its B2B offerings in the region.

Accretive M&As to drive earnings growth

• Read more at SGinvestors.io.

Eric Ong Maybank Research | https://www.maybank-ke.com.sg/ 2024-03-30 SGinvestors.io

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