Singapore-listed transportation firm ComfortDelGro Corporation Limited has on Friday announced that it has acquired taxi operator A2B Australia Limited (A2B) for AUD 182 million ($123.35 million).

ComfortDelGro said in a statement that its wholly-owned subsidiary ComfortDelGro Corporation Australia Pty Ltd has entered into a binding scheme implementation agreement (SIA) to acquire, either directly or through a wholly-owned subsidiary, all the shares of A2B it does not already own for a cash offer price of AUD 1.45 ($0.98) per share.

“This acquisition is in line with ComfortDelGro’s strategy to scale our point-to-point mobility business in our key markets,” ComfortDelGro Managing Director / Group Chief Executive Officer Cheng Siak Kian said.

“As a leading taxi network in Australia, A2B is highly complementary to our business. Its fundamentals are attractive, with a proven track record of expansion driven by underlying growth in customer demand and driver supply,

“It will also allow for diversification of our offerings in Australia, transforming ComfortDelGro Corporation Australia into a national multi-modal mobility player,” he added.

Meanwhile, ComfortDelGro Chairman Mark Greaves said that as a major long-term shareholder of A2B, and with the firm’s deep global transport experience, they are well placed in terms of capital and expertise to grow these assets, generating value and growth for their shareholders and enhancing connectivity for communities.

A2B, listed on the Australian Securities Exchange, is a leading Australian taxi network and a major technology and payment solutions provider for the personal transport industry.

Its offerings include taxi services brands 13cabs and Silver Service, a leading taxi and booking dispatch platform, MTI, and the Cabcharge payment solution.

ComfortDelGro Corporation Limited and its subsidiaries already own 9.25 percent of A2B’s shares on a fully diluted basis.

It is noted that the A2B Board of Directors has unanimously recommended that A2B’s shareholders vote in favor of the scheme and each of the A2B directors will vote the shares they control in favor of the Scheme, subject to no superior proposal and an independent expert concluding that the scheme is in the best interest of A2B shareholders.

“While ComfortDelGro is one of the world’s largest land transport companies, it also has a long-standing relationship with A2B as a major shareholder,” A2B Executive Chairman Mark Bayliss said.

“We therefore believe this transaction will further strengthen our A2B business as it is a great match of two remarkable companies offering complementary services and markets,

“We look forward to playing an integral role in Australia in the ComfortDelGro Group as they are committed to delivering best-in-class safe, reliable, inclusive, and sustainable transport for today and tomorrow. A vision well aligned with our own,” he added.

ComfortDelGro is one of the world’s largest land transport companies with a total fleet size of about 34,000 buses, taxis and rental vehicles.

The firm also runs 177km of light and heavy rail networks in Singapore and New Zealand and will operate another 33km in France come 2025.

Its global operations span seven countries – Singapore, Australia, the United Kingdom, New Zealand, China, Ireland and Malaysia.

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