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ComfortDelGro's unit acquires UK transport operator for £13m
COMFORTDELGRO Corporation is expanding its footprint in the United Kingdom through a new acquisition of a bus and coach operator in South Wales.
On Wednesday, the transport company announced that its wholly-owned subsidiary, Braddell Limited, is acquiring all the shares of New Adventure Travel (NAT Group).
The purchase consideration is about £13.4 million (S$25 million), which translates into a valuation of 5.5 times earnings before interest, taxes, depreciation and amortisation of NAT Group, ComfortDelGro said.
The acquisition will be financed using internal funds.
ComfortDelGro currently operates around 1,700 vehicles in London through another wholly-owned subsidiary, Metroline Limited.
ComfortDelGro's managing director and CEO, Yang Ban Seng, said: "With the addition of NAT Group, we are broadening our footprint into Wales and expanding the bus operations outside of London which have always been our strategic intent."
The company said that the proposed acquisition is not expected to have any material impact on the net tangible assets per share and the earnings per share of ComfortDelGro for the current financial year.
ComfortDelGro closed at S$2.03 on Wednesday, down three Singapore cents, or 1.5 per cent.