Cabcharge sells down stake
Taxi payment service Cabcharge has exited its UK CityFleet Networks (CFN) business as part of continuing efforts to cash out of non-core assets.
TAXI payment service Cabcharge has exited its UK CityFleet Networks (CFN) business as part of continuing efforts to cash out of non-core assets.
Cabcharge sold its 49 per cent stake in the business to joint venture partner ComfortDelGro for £7.9 million ($A13.4 million).
The company has incurred a loss on the sale, as the business had a carrying value of $21.7 million on Cabcharge’s books at December 31, 2016.
“The sale of Cabcharge’s stake in CFN is a final step in the monetisation of non-core assets that were not returning cash and proceeds will help the company to continue to invest to grow the earnings of its core domestic businesses,” chief executive Andrew Skelton said. The sale is expected to be completed in July.
Cabcharge, which provides financial services, taxi payments and passenger transport, also owns taxi and bus networks.
In February, the company expanded its taxi network to Queensland after agreeing to buy Brisbane’s Yellow Cabs taxi fleet for $20 million.
The deal was cleared by the competition regulator earlier in June.
Cabcharge shares yesterday gained 10¢, or 4.3 per cent, to $2.44.