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ComfortDelGro reorganises businesses in Vietnam, China
SINGAPORE'S largest taxi operator, ComfortDelGro Corporation, has rationalised its businesses in Vietnam and China.
In a post-market close filing to the Singapore Exchange on Friday, ComfortDelGro said that the operations of ComfortDelGro Savico Taxi Company, an indirect 60 per cent owned subsidiary, have been combined with Vietnam Taxi Co, an indirect 70 per cent owned subsidiary.
This is part of the rationalisation of its taxi business in Ho Chi Minh City "to achieve greater efficiencies".
In China, ComfortDelGro's indirect wholly owned subsidiary, Chengdu ComfortDelGro Taxi Co, has acquired the remaining 10 per cent stake in Chongqing ComfortDelGro Driver Training Co (CCDT) from By-Hour Driver Training Centre of Chongqing for about five million yuan (S$1 million).
Post-acquisition, CCDT will become an indirect wholly owned subsidiary of ComfortDelGro.
The acquisition was financed by internal funds and was based on the net asset value of CCDT as at Dec 31, 2017, ComfortDelGro said.
The company added that its indirect 80 per cent owned subsidiary, Beijing Tian Long Da Tian Vehicle Inspection Co (BTLDT), has ceased operations temporarily following the local government's re-development of the land on which BTLDT is situated.
BTLDT is currently looking for an alternative site to resume its operations.
ComfortDelGro said that the moves are not expected to have any material impact on the net tangible assets per share and the earnings per share of the group for the current financial year.
The counter closed two Singapore cents higher to S$2.02 on Friday.