Singapore Technologies Engineering Ltd has announced the divestment of its entire 46.5% equity interest in CityCab Pte Ltd to ComfortDelGro Corporation Limited. The transaction, completed on 1 September 2025, sees ComfortDelGro, which already owned 53.5% of CityCab, becoming the sole owner of the taxi operator.
The sale was valued at $116.3m, fully paid in cash, and was determined on a willing seller, willing buyer basis. Deloitte & Touche Financial Advisory Services Pte Ltd was jointly appointed by both parties to assess the value of the shares, which was estimated at $98.9m as of 1 June. The divestment aligns with ComfortDelGro’s focus on its core point-to-point transport business in Singapore.
CityCab, established in 1995, has been a significant player in Singapore’s taxi industry. The divestment will result in ST Engineering receiving cash proceeds of $116.3m, translating to an Enterprise Value/EBITDA multiple of 5.5 times based on CityCab’s last 12 months unaudited EBITDA.
Financially, the divestment is expected to yield a one-off gain of approximately $77.2m for ST Engineering in the current financial year. Additionally, the proceeds will be used to reduce the company’s debt, leading to an estimated annual interest expense saving of $4m. Despite the gain, the transaction is not anticipated to significantly impact the Group’s net tangible assets per share or earnings per share for the year.
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