ComfortDelgro Falls After Largest Investor Sells Stock

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http://www.bloomberg.com/news/2013-05-23/comfortdelgro-falls-after-investor-sells-stock-singapore-mover.html

ComfortDelgro Corp. (CD), the biggest operator of taxis and buses in Singapore, plunged the most in more than a decade after its former largest shareholder sold part of its stake.

The company fell as much as 14 percent, the most since April 2003, to S$1.885.

Singapore Labour Foundation raised S$329.8 million ($260 million), selling 170 million shares at S$1.94 apiece, 11 percent lower than yesterday’s closing price, according to terms for the deal obtained by Bloomberg.

“It’s very surprising as to why it has decided to cash out right now,” said Siyi Lim, an analyst at OCBC Investment Research in Singapore. “Most of the street views Singapore Labour Foundation as a very long-term investor that has been with Comfort since before the merger.”

ComfortDelgro was formed in March 2003 after the merger between Comfort Group Ltd. and Delgro Corp. to help the companies expand overseas and cut costs. It now gets almost half its operating profit from overseas operations.