Cabcharge sells stake in CityFleet for $13.3m

Company News

by Jessica Amir

Cabcharge Australia Limited (ASX:CAB) says it will sell its 49 per cent stake in CityFleet Networks (CFN) for 7.9 million pounds, which is about $13.3 million.

The taxi giant is selling its stake in the booking and dispatch service and private hire company, which operates in London, Liverpool and Aberdeen, to its JV UK partner, ComfortDelGro.

Cabcharge says the sale of CityFleet Networks is a final step towards the monetisation of its non-core assets that were not returning cash.

The business plans to use the proceeds to grow its domestic core business earnings.

The sale is also based on a valuation of 5.6 times the FY16 EBITDA of CityFleet Networks.

The sale should be completed next month (July 2017).

Shares in Cabcharge Australia Limited (ASX:CAB) are trading 0.85 per cent higher to $2.36.

Jessica Amir

Finance News Network
Jessica joined FNN in January 2017 with a passion for equities and funds management. As Head of News, she has been a broadcast journalist for over seven years, specialising in finance. She has been a journalist with Sky News Business, ABC 1, ABC's The Business and ABC24. She’s also worked as a TV reporter for regional Channel 7 and 9. She also previously worked as a financial planner and real estate agent.