- ComfortDelGro’s acquisition of the remaining stake in CityCab strengthens its strategic focus on Singapore’s point-to-point (P2P) mobility segment, though near-term earnings uplift is modest.
- - Read this at SGinvestors.io -
Deal details.
- ComfortDelGro has acquired the remaining 46.5% stake in CityCab from ST Engineering (SGX:S63) for S$116.3m, raising its ownership in the Singapore taxi operator to 100%. While ComfortDelGro has long managed CityCab’s operations, the entity has traditionally been viewed as a car-rental company.
- - Read this at SGinvestors.io -
- The acquisition, funded by debt, will result in full consolidation of CityCab’s financials. In 2024, CityCab reported S$88m in revenue and S$19m in PATMI. The transaction values CityCab at ~13x 2024 P/E, below ComfortDelGro’s own historical ~15x, suggesting the deal is earnings-accretive.
Our thoughts.
- Read more at SGinvestors.io.
