ComfortDelGro Insurance Brokers becomes wholly-owned unit of ComfortDelGro

LAND transport company ComfortDelGro Corporation said on Thursday that Global East Investments Pte Ltd has exercised its put option to sell its 51 per cent stake in ComfortDelGro Insurance Brokers Pte Ltd (CDGI) to ComfortDelGro.

With this, CDGI - which provides insurance broking, risk management, claims management and related services in Singapore - has become a wholly-owned subsidiary of ComfortDelGro.

The put option was agreed to under a joint venture agreement signed between Global East Investments and ComfortDelGro in September 2003.

ComfortDelGro paid S$22.9 million in cash for the stake, which it said was based on 1.5 times the brokerage fees of CDGI for the financial year ended Dec 31, and in accordance with the terms of the joint venture agreement.

ComfortDelGro said the acquisition would be financed by internal funds and 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.