Brokers' take

ComfortDelGro | Hold Dec 11 close: S$2.03 Target price: S$2.18 DBS Group Research, Dec 11

ComfortDelGro is forming a joint venture with Uber Technologies Inc through the acquisition of a 51 per cent stake in Lion City Holdings Pte Ltd (LCH). LCH in turn operates Lion City Rentals (LCR) which has a fleet of about 14,000 vehicles.

The aggregate cash consideration for the acquisition is estimated at S$295 million, which is based on the net asset value of about S$642 million (based on 51 per cent share). This, in turn, is based on the value of about 12,450 vehicles, and implies a value of about S$101,000 per vehicle.