Drew & Napier advised ComfortDelGro Corporation Limited on its S$295 million proposed acquisition of a 51% stake in Uber’s car rental subsidiary in Singapore
22 Dec 2017
Drew & Napier advised ComfortDelGro Corporation Limited (ComfortDelGro) on its proposed acquisition of 51% of the issued share capital of Lion City Holdings Pte. Ltd. (LCH), an indirect subsidiary of Uber Technologies, Inc. (Uber).
ComfortDelGro entered into a sale and purchase agreement relating to the transaction with Mieten B.V., an indirect subsidiary of Uber on 8 December 2017. LCH owns 100% of the issued share capital of Lion City Rentals Pte. Ltd. (LCR), a private hire vehicle fleet owner in Singapore with approximately 14,000 vehicles. The aggregate cash consideration for the transaction is estimated at S$295 million and arrived at based on the net asset value of approximately S$642 million. The transaction ranks as ComfortDelGro’s single largest deal to-date. The completion of the transaction is subject to regulatory approvals. Upon completion of the transaction, LCR will be able to benefit from ComfortDelGro’s fleet management and operations. It will also create a path for ComfortDelGro’s taxi drivers to receive ride requests on the Uber driver app and for users of the Uber driver app to directly book ComfortDelGro taxis. ComfortDelGro and Uber are finalising additional collaboration opportunities and will make further announcements in the upcoming months.
Advising ComfortDelGro on the corporate law aspects of the transaction were Director Petrus Huang, Senior Associate Michael Kwan and Associate Bryan Chua. Advising ComfortDelgro on the competition law aspects of the transaction were Directors Lim Chong Kin and Corinne Chew, Assistant Head Competition and Regulatory Economics Poh Lip Hang, Senior Associate Joanne Yong and Senior Associate Lau Zhong Ning.