Express Transindo Utama License acquisition fully completed

Express Transindo Utama: License acquisition fully completed (TAXI, Not Rated, Rp960)

TAXI made an announcement last night that the company has acquired PT Ekspres Mulia Kencana (EMK) on April 5, with a purchase price of Rp67bn. The company did not specifically mention the number of regular taxi licenses owned by EMK, but did stated that the acquisition is aligned with the company’s previous statement, written on its IPO prospectus, to add 2,000 regular taxi fleets in 2013.
EMK itself is a land transportation company established in March 2012, as a subsidiary of PT Ekspres Transportasi Antarbenua, an incorporated company founded  in September 1989 that provides elite aircraft services.

On the announcement, TAXI further stated that it targets to operate more than 10,000 regular taxi fleets by the end of this year with approximately a 30% revenue increase and a 65% profit increase as compared to audited FY12 results. That said, the company aims for Rp677bn of revenues (11% above consensus – only one broker covering) and Rp130bn of NPAT this year (8% above consensus). TAXI also expects its regular taxi fleets to reach 15,000 units within the next 2-3 years.