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 after having worked in financial advising for seven years and in TV journalism for seven years, specialising in finance, equities and analysis. She has interviewed former Prime Ministers of Australia, Tony Abbott, Julia Gillard and Kevin Rudd and ex Treasurer Jo Hockey. Jessica has worked as a journalist with Sky News Business, ABC 1, ABC's The Business, ABC24 and has also been a regional Channel 7 and 9 TV reporter with Prime7 and Win News.