By SYDNEY – Shares in A2B Australia are set to reach their highest closing price since March 2019 following a unanimous recommendation from the Australian taxi-tech provider’s board to accept a takeover proposal from Singapore’s ComfortDelGro.
A2B announced on Friday that it had entered into a takeover scheme after receiving a proposal from ComfortDelGro, valuing its equity at AUD 182 million. Shareholders will receive AUD 1.45 per share in cash, in addition to a AUD 0.60 dividend recently declared on the sale of property assets.
The share price of A2B, which offers booking, dispatch, and other taxi-related services, rose by 21% to AUD 2.16 in afternoon trade.
ComfortDelGro, which held a 12% stake in A2B as of November 30, presented a proposal that represented a 31% premium to the stock’s three-month adjusted volume weighted average price, according to A2B. The combination of the cash proposal, dividend, and imputation credits could amount to a total value of AUD 2.30 per share.
Founded in 1976 and previously known as Cabcharge until 2018, A2B has experienced a decline in recent years. Prior to the proposal from ComfortDelGro, the stock had seen a 66% decrease in value since 2012, the year Uber launched in Australia.
“ComfortDelGro’s leadership in public and personalized transport services, along with their industry expertise and experience, will accelerate growth for our customers, drivers, and team members,” said Mark Bayliss, Executive Chairman of A2B.
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