ComfortDelGro to acquire Scottish Citylink stake and some Megabus assets in UK

ComfortDelGro taxi in SingaporeComfortDelGro taxi in Singapore

ComfortDelGro has entered a 8.75 million British pound, or around S$15.84 million, deal with Stagecoach Group to acquire the remaining 35 percent of Scottish Citylink Coaches it doesn’t already own and some assets of Megabus, the land transport operator said in a filing to SGX Tuesday.

The deal will see Scottish Citylink, which operates 19 long-distance express services in Scotland, become a wholly owned subsidiary, ComfortDelGro said.

In addition, ComfortDelGro will acquire the marketing, retail and customer service activities of Stagecoach’s Megabus UK coach business and the Falcon coach service, which operates in Southwest England, the filing said.

Megabus operates a network of long-distance coach services linking 90 locations in England and Wales, while the Falcon service operates 19 routes a day, the filing said.

After the acquisitions are complete, ComfortDelGro will become the U.K.’s second largest inter-city coach operator, with an around 11 percent market share, the filing said.

“The Scottish Citylink, Megabus and the Falcon Service acquisitions provide us with an excellent platform to further grow our coach business in the U.K.,” Yang Ban Seng, managing director and group CEO of ComfortDelGro, said in the statement.

“We intend to leverage on the experience we have gained in our existing operations to roll out new and innovative services for our passengers in England, Wales and Scotland as we position ourselves for post-Covid recovery. We will continue to look at opportunities to grow our businesses in the U.K., which remains one of our most significant investment destinations,” Yang added.

ComfortDelGro will fund 7 million pounds of the consideration in cash from internal resources, and via the assumption of an existing shareholder loan of 1.75 million pounds extended to Stagecoach Bus Holdings by Scottish Citylink Coaches, the filing said.