ComfortDelGro is expanding its British operations through a £1.2 million (S$2.2 million) acquisition of London taxi circuit operator Dial-a-Cab, the transport giant announced yesterday.
Under the deal, ComfortDelGro's wholly owned British subsidiary CityFleet Networks will acquire the business and certain assets of Dial-a-Cab, adding another 1,100 black cabs to ComfortDelGro's London taxi circuit.
ComfortDelGro is already the largest taxi circuit operator in London with 1,900 taxis subscribed to its Computer Cab circuit. The move takes its total fleet to 3,000.
Mr Yang Ban Seng, ComfortDelGro's managing director and group chief executive officer, said: "This acquisition will enable the group to grow and strengthen its position as the leading taxi circuit operator in London through an expansion of the customer and driver base. It will also help us achieve cost synergies through the consolidation of back-end processes and functions."
The acquisition, if completed, is not expected to have any material impact on the group's net tangible assets per share and earnings per share for the current financial year.
Mr Yang added that London Councils and Transport for London also recently awarded CityFleet the Taxicard and Dial-a-Ride contract for another three years, with an option for a fourth.
Taxicard is the largest public sector day-to-day transport service in London for passengers with serious mobility impairments or who are severely sight-impaired.
CityFleet has, through its taxi subsidiary Computer Cab, held this contract over several decades.