SINGAPORE - ComfortDelGro has agreed to acquire all the shares in A2B Australia it does not already own via a scheme of arrangement for A$1.45 in cash per share, it announced on Dec 22.
Australian taxi network operator A2B is also a provider of technology and payment solutions for the personal transport industry. It is listed on the Australian Securities Exchange, and its offerings range from taxi service brands 13cabs and Silver Service to its Cabcharge digital payment solution.
ComfortDelGro and its Australian subsidiary Swan Taxis currently hold about 9.3 per cent of A2B.
At A$1.45 apiece, the consideration for ComfortDelGro to acquire the remaining shares in A2B stands at A$165.1 million (S$148.6 million).
The cash offer excludes A2B’s payment of a 60 Australian cents per share special dividend in respect of net proceeds from its sale of certain properties, which is expected to be paid out on Jan 30, 2024.
ComfortDelGro said its scheme to acquire the rest of A2B values the Australian transport company’s issued equity value at A$182 million on a fully diluted basis.
It intends to fund the transaction through existing cash and bank facilities.
ComfortDelGro said acquiring the rest of A2B presents a unique opportunity for the group to acquire a portfolio of businesses in line with its strategy to scale its point-to-point mobility business in Australia.
Describing A2B as highly complementary to ComfortDelGro’s business, managing director and group chief executive Cheng Siak Kian said the acquisition would also allow for the diversification of the group’s offerings in Australia, transforming ComfortDelGro Corporation Australia into a national multi-modal mobility player.
ComfortDelGro chairman Mark Greaves said: “As a major long-term shareholder of A2B, and with our deep global transport experience, we are well placed in terms of capital and expertise to grow these assets, generating value and growth for our shareholders and enhancing connectivity for communities.”
The transaction is slated for completion in the first half of 2024. It is subject to approval from A2B’s shareholders and the Australian court, as well as clearance from the Australian Competition and Consumer Commission, among other conditions.
A2B’s board of directors have unanimously recommended that the company’s shareholders vote in favour of the scheme, with expected voting to take place in late March 2024.
Shares of ComfortDelGro closed up two cents, or 1.5 per cent, at $1.38 on Dec 22, after the announcement. THE BUSINESS TIMES
