A2B completes property sale and declares fully franked dividend

A2B Australia Limited (ASX:$A2B) has successfully completed the sale of its properties, raising $105 million, and declared a fully franked dividend of $0.60 per share, surpassing previous guidance. The company has entered into a Scheme Implementation Arrangement with ComfortDelGro Corporation Australia for a proposed acquisition at $1.45 per share in cash, excluding the $0.60 fully franked dividend. The cash offer price represents a 31% premium to A2B's 3-month volume weighted average share price. A2B's Board unanimously recommends the Scheme, subject to various customary conditions. The proposed transaction marks the culmination of A2B's 'Better Before Bigger' turnaround strategy adopted in July 2022.

Executive Commentary on Scheme Implementation Arrangement

The Scheme Implementation Arrangement with ComfortDelGro Corporation Australia represents a significant milestone for A2B. The proposed acquisition at $1.45 per share in cash, excluding the $0.60 fully franked dividend, reflects the value A2B has delivered to its shareholders. The Board's unanimous recommendation of the Scheme underscores our confidence in the proposed transaction. We believe this strategic move aligns with our 'Better Before Bigger' turnaround strategy and sets the stage for the next phase of growth and development for A2B.

Outlook and Key Points

A2B has successfully completed the sale of its properties, raising $105 million, and declared a fully franked dividend of $0.60 per share, exceeding previous guidance. The company has entered into a Scheme Implementation Arrangement with ComfortDelGro Corporation Australia for a proposed acquisition at $1.45 per share in cash, excluding the $0.60 fully franked dividend. The proposed transaction represents the culmination of A2B's 'Better Before Bigger' turnaround strategy adopted in July 2022. Shareholders who hold A2B shares on the dividend record date of 15 January 2024 and at the time of implementation of the Scheme will receive total cash of $2.05 per share plus up to $0.25 value per share in franking credits. A2B reaffirms its previously provided FY24 guidance of $22 million EBITDA. The proposed transaction with ComfortDelGro Corporation Australia presents an optimistic outlook for A2B's future growth and expansion in the public and personalized transport sector in Australia.