ComfortDelGro unit to expand bus service operations in Queensland

MAINBOARD-LISTED transport operator ComfortDelGro Corporation announced on Wednesday that wholly-owned subsidiary ComfortDelGro Corporation Australia (CDC) is expanding its bus service operations in Queensland, Australia.

CDC's wholly-owned subsidiary, CDC South East Queensland, will acquire the business assets of Young's Bus Service, the largest bus operator in the Rockhampton region, for A$17.5 million (S$17.5 million).

Young's, which manages two depots and operates a fleet of 42 buses, provides dedicated route and school bus services under long-term contracts with the State Department of Transport and Main Roads for Queensland.

In a bourse filing, ComfortDelGro said the proposed acquisition will be financed through internal funds.

The proposed acquisition, which is subject to regulatory approval, will see CDC's bus fleet increase to 197 buses in Queensland and close to 2,500 in Australia.

ComfortDelGro said the proposed acquisition is not expected to have any material impact on its net tangible assets per share and earnings per share for the current financial year.

Shares of ComfortDelGro fell 0.6 per cent or S$0.01 to close at S$1.56 on Wednesday.