ComfortDelGro - RHB Invest 2024-10-28: Accretive UK Taxi Business Acquisition; Reiterate BUY

• ComfortDelGro has acquired a 100% stake in Addison Lee – one of London’s largest private hire vehicles fleet operators – for GBP269.1m. We assess the acquisition as earnings accretive.
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Addison Lee is London's biggest minicab firm

• Addison Lee is London's biggest minicab firm with more than 5,000 vehicles as per its 2023 financial statements. This includes 1,021 full EVs, 625 zero-emissions-capable hybrids, and more thab 1,000 Ultra-Low Emissions Zone or ULEZ-compliant internal combustion engine or ICE vehicles.
  • The business was started by founder John Griffin in 1975, who sold it to US private equity firm Carlyle Group in 2013 for a reported GBP300m. Cheyne Capital and Liam Griffin, son of John Griffin, regained control of the business in 2020. Addison Lee acquired London black cab operator ComCab in Jul 2021 and London private hire rival Green Tomato Cars in Jun 2023.
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Deal details.

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Shekhar Jaiswal RHB Securities Research | https://www.rhbgroup.com/ 2024-10-28 SGinvestors.io

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