SINGAPORE: ComfortDelGro said on Wednesday (Dec 21) that it will acquire the remaining stake in its Australian subsidiary for AS$186 million (S$196 million).
The acquisition of the 49 per cent stake in ComfortDelGro Cabcharge (CDC) from Cabcharge Australia will be financed by a combination of internal funds and bank loans, the Singapore transport company said in a media release.
The acquisition is subject to approval from Australian authorities, it added.
The Australian subsidiary was formed in 2005 following the acquisition of Westbus Group by ComfortDelGro and Cabcharge. CDC has a combined fleet of 1,712 buses and employs 2,300 staff, and operates a range of bus services in New South Wales and Victoria.
“The acquisition of the remaining stake in CDC reflects our commitment to the Australian market and our continued confidence in its growth potential,” said Mr Kua Hong Pak, ComfortDelGro’s managing director and group CEO.
The acquisition is expected to be completed in the first quarter of 2017, said ComfortDelGro.