Comfort DelGro’s largest investor takes advantage of drop in share price to increase stake

SINGAPORE: Silchester International Investors has increased its stake in ComfortDelGro, taking advantage of the transport operator’s recent share price weakness following disappointing quarterly results.

The asset manager, which is already ComfortDelGro’s largest shareholder, bought nearly 1.94 million shares on May 21 at an average price of $1.2908 per share. The latest purchase raised Silchester’s total holdings to around 196.83 million shares, representing a 9.087% stake in the company.

The move follows an earlier purchase on May 8, when Silchester acquired 893,600 shares at an average price of $1.4312 each.

ComfortDelGro itself has also been supporting its share price through share buybacks. Its most recent buyback took place on May 18, when the company purchased 292,000 shares at an average price of $1.265 apiece. Under its current mandate, the group has bought back a total of 1.46 million shares so far.

The company’s shares have come under pressure after it posted lower-than-expected results for the first quarter of FY2026. Part of the weakness was attributed to softer performance from its ride businesses in the United Kingdom, where demand for airport transfers declined amid the ongoing fighting in the Middle East.

ComfortDelGro spent close to half a billion dollars to acquire a London private taxi group in 2024. UK company Addison Lee was bought for £269 million or close to S$460 million, in an acquisition that was executed through ComfortDelGro’s subsidiary, CityFleet Networks.

ComfortDelGro’s CEO, Cheng Siak Kian, said at the time, “This move not only extends our footprint in the UK but also allows us to leverage Addison Lee’s expertise to enhance and scale our premium point-to-point services globally.”

On top of the impact of the weaker business from its UK business, geopolitical tensions are also expected to push fuel costs higher, adding to concerns over the group’s operating environment in the months ahead.

ComfortDelGro shares closed at $1.28 on May 22, down 0.78% for the day. The counter has fallen 13.51% since the start of the year.