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?

A: S$642 million OR B: S$295 million?

ChannelNewsAsia: A – $642 million

ComfortDelGro to acquire 51% stake in Uber’s car rental subsidiary in Singapore for S$642m

Channel News Asia on ComfortDelGro Uber JV (08-Dec-2017)
Channel News Asia on ComfortDelGro Uber JV (08-Dec-2017)

 

 

The Straits Times: A – S$642 million

ComfortDelGro to take 51% stake in Uber business

The Straits Times On ComfortDelGro Uber JV (09-Dec-2017)
The Straits Times On ComfortDelGro Uber JV (09-Dec-2017)

 

Singapore Business Review: Neither

ComfortDelGro and Uber enter joint venture deal for $642m

Singapore Business Review on ComfortDelGro Uber JV (08-Dec-2017)
Singapore Business Review on ComfortDelGro Uber JV (08-Dec-2017)

 

Deal Street Asia: B – S$295 million

Singapore’s ComfortDelGro picks 51% stake in Uber’s car rental unit for $218m

Deal Street Asia On ComfortDelGro Uber JV (08-Dec-2017)
Deal Street Asia On ComfortDelGro Uber JV (08-Dec-2017)

 

 

The Business Times: (Uhm.. SGX Observer didn’t subscribe, can’t see)

ComfortDelGro to buy 51% of Uber’s Lion City rental car firm

Business Times On ComfortDelGro Uber JV (09-Dec-2017)
Business Times On ComfortDelGro Uber JV (09-Dec-2017)

 

TodayOnline: A – S$642 million

Uber deal inadequate to turn ComfortDelGro around: Analysts

TodayOnline On ComfortDelGro Uber JV (09-Dec-2017)
TodayOnline On ComfortDelGro Uber JV (09-Dec-2017)

 

 

Zaobao.com: A – S$642 million (and can only use 12450 out of the 14000 cars)

“总值6亿4200万元的收购价则包括1万2450辆汽车价值的净资产值。换句话说,康福德高可使用的狮城出租车子只有1万2450辆车子或约九成。”

康福德高司机 公司与优步结成联盟 有人认为收入增有人担心压力大

Zaobao.com on ComfortDelGro Uber JV (08-Dec-2017)
Zaobao.com on ComfortDelGro Uber JV (08-Dec-2017)

 

Let’s check other international news networks….

 

Bloomberg: B – S$295 million

ComfortDelGro to Buy 51% in Uber Singapore Car Rental Unit

Bloomberg On ComfortDelGro Uber JV (08-Dec-2017)
Bloomberg On ComfortDelGro Uber JV (08-Dec-2017)

 

Good Deal Or Not?

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.

 

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