ComfortDelGro and Uber Join Forces – The Multi-Million Question
ComfortDelGro And Uber Join Forces
ComfortDelGro on Friday (08-Dec-2017) evening made an announcement with title “ComfortDelGro Ties Up with Uber Technologies, Inc“, and attached an media release statement titled “ComfortDelGro And Uber Join Forces“.
In the joint media release statement, it says
Under the agreement, which is subject to regulatory approval, ComfortDelGro will acquire a 51-percent-stake in Uber’s wholly-owned car rental subsidiary in Singapore, Lion City Holdings Pte Ltd. The latter, in turn, operates Lion City Rentals (LCR) which has a fleet of about 14,000 vehicles. Uber will retain the remaining 49 percent. Valued at about $642 million, with a cash consideration of $295 million, it ranks as ComfortDelGro’s single largest deal to-date.
But, in the announcement by ComfortDelGro, it says
ComfortDelGro Corporation Limited (“ComfortDelGro”) wishes to announce that it has entered into a sale and purchase agreement with Mieten B.V., a subsidiary of Uber Technologies, Inc. (“Uber”) to acquire a 51% stake in its wholly-owned subsidiary in Singapore, Lion City Holdings Pte. Ltd. (Company Registration No. 201624734K), which in turn owns 100% of Lion City Rental Pte Ltd (“LCR”). LCR is a private hire vehicle fleet owner in Singapore with about 14,000 vehicles. Through this partnership, ComfortDelGro will become a multi-dimensional personalised mobility operator providing a broader range of services to consumers.
The aggregate cash consideration for the above acquisition is estimated at S$295 million and arrived at based on the net asset value of approximately S$642 million based on the value of about 12,450 vehicles. ComfortDelGro has agreed to pay for more vehicles when utilisation increases.
The Multi-Million Question – How Much Is ComfortDelGro Paying For The 51% Stake?
From the responses and comments floating all around social media, it seems most people don’t find it benefiting ComfortDelGro. But…. doesn’t the price matter?? Or even if the deal is S$1 million, the deal is also not good?
On the side note, SGX Observer is amused by how such a media release announcement being understood differently by reporters of main stream news networks.