ComfortDelGro sells 60% stake in China driving school for S$0.5m, expects delay for UK acquisition completion

TRANSPORT operator ComfortDelGro on Friday (Jan 28) announced that its wholly-owned subsidiary, ComfortDelGro (China), has entered into a sale-and-purchase agreement to sell its 60 per cent stake in Nanjing ComfortDelGro Xixia Driver Training Co for 2.26 million yuan (about S$500,000).

Nanjing Xixia, a company incorporated and domiciled under the laws of China, is in the business of operating driving schools.

ComfortDelgro's stake will be sold to Nanjing Xixia No. 2 Passenger Transportation Co, the company said in a bourse filing. The consideration was arrived at on a "willing buyer, willing seller" basis, after taking into account the book value and net tangible asset value of Nanjing Xixia, among other factors.

ComfortDelGro said the transaction will not have any material impact on its net tangible assets or earnings per share for the fiscal year ending Dec 31.

In a separate announcement on Friday evening, the company said it is expecting a delay for the completion of an acquisition in the UK. The company had said last month that it would acquire UK public transport provider Stagecoach Group's remaining 35 per cent stake in Scottish Citylink Coaches. Scottish Citylink, which became a 65 per cent-owned subsidiary of ComfortDelGro in 2005, will then become a wholly owned subsidiary. This acquisition was slated for completion on or around Feb 28.

ComfortDelGro said the Competition and Markets Authority of the UK had issued an initial enforcement order as part of a pending investigation of the proposed merger between National Express Group and Stagecoach. 

GET BT IN YOUR INBOX DAILY

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

Sign UpVIEW ALL

This prevents either National Express or Stagecoach from disposing of their UK businesses or assets at the current time. 

ComfortDelGro did not give an expected date for the completion of the acquisition, but said it would make further announcements when appropriate. 

Shares of ComfortDelGro ended Friday flat at S$1.36.