Corporate digest

ComfortDelGro

COMFORTDELGRO Corporation (ComfortDelGro) has entered into a share purchase agreement to acquire the remaining 49 per cent stake in CityFleet Networks (CFN) from Cabcharge Australia for £7.9 million (about S$14 million), making CFN a wholly-owned subsidiary.

CFN provides account, booking and despatch services for taxis, private hire cars and coaches in the United Kingdom.

The purchase price is based on a valuation of 5.6 times the FY2016 earnings before interest, tax, depreciation and amortisation (ebitda) of CFN, said ComfortDelGro. As at May 31, 2017, CFN had accumulated profits of £9.1 million.

The acquisition will be financed by internal funds.

CapitaLand Limited

CAPITALAND Limited announced on Wednesday that its two wholly owned subsidiaries have divested 100 per cent equity interest in Somerset Whitefield Hospitality Private Limited (SWHPL) to parties unrelated to CapitaLand.

CapitaLand said that the equity interest comprises 7,030,775 equity shares of 10 Indian rupees each and 2,947,190 non-cumulative redeemable convertible preference shares of 100 rupees each. The two selling subsidiaries are Ascott International Management Pte Ltd and Ascott International Management (2001) Pte Ltd.

The consideration was based on the adjusted net asset value of SWHPL as at June 23, 2017 of approximately 347.5 million rupees (S$7.4 million), taking into account, amongst other factors, the agreed land value of 284 million rupees. As a result of the sale, SWHPL has ceased to be a subsidiary of CapitaLand.

Stamford Tyres

STAMFORD Tyres reported a jump in net profit from S$2.59 million in FY16 to S$8.11 million in FY17, thanks in part to lower expenditure. Revenue for the full year slipped nearly 1.5 per cent to S$238.67 million on the back of lower sales in Africa and South-east Asia. Meanwhile, earnings per share rose from 1.10 Singapore cents per share to 3.44 Singapore cents per share. During the quarter, total expenditure fell 3.6 per cent to S$230.35 million.

Stamford Tyres has declared a final dividend of 1.5 Singapore cents, up from 1 cent a year ago.

"The global economic outlook continues to remain uncertain," said Stamford Tyres. "As a result, our operating environment will continue to be challenging. To mitigate the impact of this challenging environment, the group will continue to optimise its product mix, manage operating costs and build on its core markets in South-east Asia."