Singapore giant in $182m buyout of 13cabs operator A2B

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A2B Australia also announced on Friday it had received the $78 million proceeds from the sale of a property in the inner-city Sydney suburb of Alexandria. The company will also pay a fully franked dividend of 60¢ per share on January 30.

ComfortDelGro chief executive Cheng Siak Kian said the acquisition was in line with the strategy to expand its “point-to-point mobility business in our key markets”, and enable the group to add a new arm to its operations in Australia which mainly comprise large privately-operated bus services.

A2B’s Mr Bayliss said the backing of a large player and its expertise in transport would enable A2B to “accelerate growth for our customers, drivers and team members”. A turnaround strategy at the company began in mid-2022.

The 13cabs network of taxis is trying to claw back market share from Uber and other ride-sharing groups.

The $1.45 per share offer price is at a 31 per cent premium to A2B’s three-month volume-weighted average share price.

The A2B board is unanimously recommending the deal to shareholders because of the significant premium, certainty of value and limited conditions.

Sandon Capital’s Mr Radzyminski said Mr Bayliss and his board and management had “done an exceptional job in turning the business around”.

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