CityCab, which is now a wholly-owned subsidiary of CDG, has been managed by CDG since 2005 as part of its local taxi business. Prior to the acquisition, CDG owned 53.5% of CityCab, while the remaining shares were owned by ST Engineering Land Systems (STLS).
CDG says that the full ownership of CityCab will strengthen its core point-to-point business in Singapore and allow it to better integrate and shape its global point-to-point business, adapting to market demands and boosting profit contribution.
The acquisition is expected to be earnings accretive, says the group, and the purchase consideration has been paid in full and funded through the group’s bank facilities.
In FY2024, CityCab contributed earnings of $8.7 million to ST Engineering.
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The stake is carried on ST Engineering's book at $36 million as at June 30. The sale will result in a one-off gain of $77.2 million for the current financial year ending Dec 2025.
