Transport company ComfortDelGro has announced that it has bought out a 51% stake in its insurance brokerage unit from its partner Global East Investments Pte Ltd.
This means that ComfortDelGro Insurance Brokers Pte Ltd (CDGI), which provides insurance broking, risk management, and claims management services in Singapore is now a wholly owned subsidiary of ComfortDelGro.
Global East Investments reportedly exercised its option to sell its 51% share in CDGI, reported Business Times. The option was stated in the joint venture agreement signed in September 2003.
The transaction was worth SGD$22.9 million (US$17.25 million) in cash, which was equivalent to 1.5 times the brokerage fees of CDGI for the financial year ended December 31, 2017, as well as other terms stated in the joint venture agreement.
ComfortDelGro added that the transaction was funded internally, and it is not expected to have any impact on the group’s net tangible assets per share and earnings per share for the current financial year.
The company also recently acquired New Adventure Travel Ltd, a bus and coach operator based in Wales, United Kingdom. The acquisition was valued at SGD$25 million (US$18.83 million) and was its first UK acquisition outside London.
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