What is the news?
ComfortDelGro Corp (“CD”) and Uber Technologies (“Uber”) jointly announced the agreement to form a joint venture. CD will be taking a 51% stake in Lion City Holdings Pte Ltd, which in turn owns 100% of Lion City Rental Pte Ltd (“LCR”). While LCR owns a private hire vehicle (“PHV”) fleet of about 14,000 vehicles. The sale consideration of S$295mn is based on the net asset value of S$642mn based on 12,450 vehicles.
How do we view this?
Maintain Buy; unchanged target price of $2.69
We have not made any changes to our forecasts, pending more details and conclusion of the deal.