ComfortDelGro Corporation said its wholly-owned subsidiary ComfortDelGro Corporation Australia has entered into an agreement to acquire all the issued shares of FCL Holdings for A$110 million (S$111.6 million).
FCL operates a Sydney Metropolitan Bus Service Contract with Transport for New South Wales in northern Sydney and five Rural & Regional Bus Service Contracts in North Coast and New England. It also manages eight depots and operates a fleet of 220 buses.
The acquisition will enable ComfortDelGro Australia to expand its bus operations in New South Wales, where it operates 1,239 vehicles.
ComfortDelGro Australia has also entered into an agreement to acquire the Terrey Hills Depot and Toormina Depot for a sum of A$15.45 million to operate the bus services.
Fraser & Neave
Higher input costs and the absence of a huge exceptional gain weighed down the results for Fraser & Neave (F&N) for its third quarter.
Net profit for the beverage-cum-printing and publishing company for the three months to June 30 sank 96 per cent to $50.3 million.
The bottom line in the same period last year was boosted by a one-off $1.2 billion gain as a result of the group's enlarged control of Vietnam Dairy Products Joint Stock Co (Vinamilk), the largest dairy company in Vietnam.
Excluding fair value reserves and exceptional items, 2018's third-quarter net profit would have declined by a milder 12 per cent, the group said.
Revenue edged up 0.4 per cent to $485 million, thanks to strong dairies sales and favourable translation effects, negated by weaker soft drinks sales.
Segment-wise, beverage sales in Malaysia were impacted by soft market sentiment and consumers postponing purchases as a result of changes in GST regulations. Export sales to Indonesia faced headwinds due to the depreciating rupiah. These were offset by higher sales in Singapore as a result of the Hari Raya Puasa festivities.
Dairies, which remained the group's key contributor, saw Malaysia's contribution boosted by export sales and favourable currency movements.
Thailand's revenue growth was fuelled by higher export sales, partly offset by production downtime as a result of a fire at a co-manufacturer's plant. Dairies Singapore's revenue grew on the back of tactical price initiatives and higher export sales to Indonesia.