ComfortDelGro buys rest of CityCab from ST Engineering for S$116.3 million

ComfortDelGro (CDG) now wholly owns taxi operator CityCab after acquiring the remaining shares it did not already have from ST Engineering Land Systems on Sep. 1.

The purchase totalled S$116.3 million, CDG announced.

The Singapore transport giant has managed CityCab since 2005 as part of its local taxi business, and previously held a 53.5 per cent stake.

The other 46.5 per cent was owned by ST Engineering through a joint venture.

Explaining the rationale for the acquisition, CDG said that full ownership will strengthen the group's core point-to-point mobility business in Singapore and beyond.

It will also help the group better adapt to market demands and boost profit contribution.

CDG stated that the net tangible asset and net asset value attributable to the shares it bought from ST Engineering is around S$37.4 million, based on CityCab's audited financial statements for the financial year ending Dec. 31, 2024.

The group also added that it does not expect the acquisition to have any material impact on its net tangible assets or earnings per share for its financial year ending Dec. 31, 2025.

On ST Engineering's end, the company shared in a press release that the net tangible asset and net asset value attributable to its sale shares was around S$36 million.

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