ComfortDelGro fully acquires CityCab from ST Engineering unit for $116.3m

CityCab has been managed by ComfortDelGro since 2005.

ComfortDelGro Corporation (CDG) has acquired all of ST Engineering Land Systems’ (STLS) shares in taxi operator CityCab for a total purchase consideration of $116.3 m.

CityCab was a joint venture between CDG, which owned 53.5%, and STLS, which held the remaining 46.5%.

CityCab has been managed by CDG since 2005 as part of its local taxi business. In CDG’s bourse filing, the company disclosed that full ownership of CityCab will strengthen its core point-to-point business in Singapore and allow it to shape its global point-to-point business.

“The acquisition is expected to be earnings accretive,” CDG said.

It was also disclosed that CDG and STLS have jointly commissioned a valuation by Deloitte & Touche Financial Advisory Services to determine the market value of the sale shares based on international valuation standards.

Based on a report on 25 August 2025, both parties have agreed that the valuation of the sale shares is $98.9m. Taking this into account, the parties arrived at a total purchase consideration of $116.3m. This was paid in full and was funded through CDG’s bank facilities.

CDG noted that the acquisition is not expected to have any material impact on the net tangible assets or earnings per share of CDG for the financial year ending 31 December 2025.

ST Engineering disclosed that the divestment will result in cash proceeds of $116.3m and translates to an enterprise value or EBITDA multiple of 5.5 times based on CityCab's unaudited EBITDA in the last 12 months for the period ended 31 May 2025.

ST Engineering expects the divestment to result in a one-off gain on disposal of approximately $77.2m for the current financial year.

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