Sydney taxi giant Cabcharge is speculated as a potential suitor for the sale of Grenda Corporation
By David Goeldner | September 30, 2011
The latest industry speculation about the sale of Grenda Corporation revolves around an expected pitch for its businesses from Sydney-based taxi giant Cabcharge.
Cabcharge already operates buses across Sydney through a joint partner arrangement with Singapore-based transport group ComfortDelGro.
While Cabcharge’s taxi businesses have not performed as well as expected over the past 12 months, according to the Financial Review, there appears to be plans to expand its bus interests in Melbourne.
The Financial Review reported on Thursday, September 29, that Grenda Corporation’s bus operations and manufacturing divisions could be worth between $400 million and $540 million with annual earnings between $60 million and $67 million EBITDA (earnings before interest, taxes, depreciation, and amortisation).
Grenda Corporation Managing Director Scott Grenda says he is aware of the Financial Review report, but would not confirm if Cabcharge was bidding for the business.
Grenda did say on Friday September 30 that his group had received a number of expressions of interests from potential buyers, adding that he was not permitted to provide comment about the financial aspects of the impending sale.
He says the selling price of Grenda Corporation would not be determined by the group, but was up to the bidders to determine.
“It’s very much like a tender process,” he says.
Grenda says confidentially clauses have been signed with each of the respective parties that have placed bids, preventing disclosure of who was bidding and the value of each bid.
He expects a successful buyer of Grenda Corporation will be announced in November.