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ComfortDelGro acquires Australian bus operator FCL Holdings for A$110m
COMFORTDELGRO Corporation announced on Tuesday that its wholly-owned subsidiary ComfortDelGro Corporation Australia has entered into an agreement to acquire all the issued shares of FCL Holdings for A$110 million (S$111.1 million).
FCL operates a Sydney Metropolitan Bus Service Contract with Transport for New South Wales in northern Sydney and five Rural & Regional Bus Service Contracts in North Coast and New England. FCL manages eight depots and operates a fleet of 220 buses.
The acquisition will enable ComfortDelGro Australia to expand its bus operations in New South Wales, where it already operates 1,239 vehicles.
ComfortDelGro Australia has also entered into an agreement to acquire the Terrey Hills Depot and Toormina Depot for a sum of A$15.45 million for the operation of the bus services.
The acquisition of FCL, which is subject to regulatory approval, will be financed through a mix of debt and internal funds.
Completion is expected by Sept 30, 2018.
The acquisition is not expected to have any material impact on the net tangible assets per share and the earnings per share of the ComfortDelGro Group for the current financial year.