Cabcharge sells private bus JV for $186M

Company News

by David Chau

Cabcharge Australia Ltd (ASX:CAB) has agreed to sell its 49% stake in a private bus joint venture (ComfortDelGro Cabcharge Pty Ltd) for $186 million.  The sale was made to its joint venture partner, ComfortDelGro Corporation Ltd.

Cabcharge expects this transaction to complete in late February 2017, and net proceeds from this sale to be $183 million.

The company says, at 30 June 2016, it had 7,448 cars in its fleet, and processed over $1 billion in taxi fares in FY16.

The company also says that its Cabcharge terminals operate in around 21,570 taxis throughout Australia.

Cabcharge posted a net profit of $25.6 million at 30 June 2016.

David Chau

Finance News Network
David joined FNN in April 2016. In addition to presenting the Market Outlook and latest business news stories, David interviews senior economists and CEOs of ASX-listed companies. Prior to working for FNN, David was a litigation lawyer.