City Group Co expands into Jordan
City Group Co. (CGC), Kuwait’s leading listed public transport company, announced today the completion of its acquisition of 51% of Autobus (Comprehensive Multiple Transport Company - CMTC) of Amman. The transaction was achieved through a JD15 million (KD6.2 million) capital injection.
Present at the completion ceremony in Amman were the Group Chairman of CGC, Mr. Yacoub Al Sharhan, and CMTC Chairman, Mr. George Abu Khader, as well as senior executives from both companies.
Speaking at today’s announcement, Mr Al Sharhan said: “Today’s agreement represents a very exciting and unique opportunity for CGC, in partnership with CMTC, the Abu Khader Group and the Jordanian government.
“CGC has had a long and successful involvement in the development and growth of the public transport sector in Kuwait. Working closely together, I am confident that we can use our expertise to help unlock CMTC’s full potential and deliver a modern, safe, affordable and reliable public transport system which is tailored for the growing needs of the people of Jordan.“
Mr Abu Khader said: “After extensive discussions over the past twelve months, we gladly welcome the entry of CGC into CMTC as a strategic partner, one that is particularly well-positioned to contribute significant expertise in helping to develop our public transport services. With our new partner we are looking forward to continuing the strong progress already achieved towards His Majesty’s vision of a safe, reliable and affordable public transport system for Jordan.”
Established in 1977 in Kuwait, CGC is a leading provider of safe, affordable, country-wide, public transportation. In 2009, through its Citybus division, CGC provided services to approximately over 34 million passengers. CGC’s Citybus division started route operations in 2002 as Kuwait’s first private sector public transport company. Now, with a 40% share of the Kuwaiti market, CGC is currently Kuwait’s second largest public transport company, operating a fleet of 585 buses in Kuwait for scheduled and charter operations.
CGC’s acquisition of a 51% stake in CMTC represents CGC’s first major step towards achieving its objective of becoming one of the region’s leading regional public transportation groups. Kuwait-based GulfMerger advised CGC in this particular acquisition, acting as CGC’s sole buy-side advisor.
CMTC was established in 2005 with a paid-up capital of JD20 million (KD8.2 million). Since then CMTC has developed into a leading public transport company operating across Jordan. Together with four wholly-owned subsidiaries, CMTC is licensed to operate over 400 buses. In 2009 it operated across 43 public transport lines across the Kingdom and will expand operations across an additional 24 lines during the course of 2010. In 2009, CMTC’s fleet provided public transportation services to over 23.3 million passengers across its network.
Mr. Yacoub Al Sharhan, Group Chariman of City Group Company and Mr. George Abu Khader, CMTC Chairman.