SWVL - Swvl Sells one of its Subsidiaries Urbvan to Kolors To Leverage Sale Proceeds for Enhanced Strategic Expansion | Benzinga
DUBAI, United Arab Emirates, Sept. 13, 2023 (GLOBE NEWSWIRE) -- Swvl Holdings Corp ("Swvl" or the "Company") (NASDAQ:SWVL), a global technology provider for enterprise and government mobility solutions with a global footprint, announces the successful sale of one of its subsidiaries, Urbvan Mobility Ltd. ("Urbvan"), to Kolors Inc. ("Kolors"), a leading transport provider in Latin America, for aggregate gross proceeds of $12 million. Swvl acquired Urbvan in July 2022 in an all-share acquisition, and the sale of Urbvan to Kolors is comprised entirely of cash. Swvl will receive $12 million for the sale of Urbvan, of which $9.5 million in cash was paid at closing, and $2.5 million to be paid over 1 year. Urbvan constituted 4% of Swvl's IFRS revenues as of September 30, 2022, and approximately 7% of Swvl's IFRS revenues as of December 31, 2022. Its sale reflects Swvl's strategy to focus on higher priority markets.
Mostafa Kandil, CEO of Swvl, said, "The sale of Urbvan to Kolors is a step in our strategic vision for profitable growth. This move enables Swvl to accelerate its plans for enhanced strategic expansions in higher priority markets."
Meanwhile, through this transaction Kolors gains complete ownership of Urbvan, a leading technology transport company based in Mexico. This acquisition strategically positions Kolors to tap into Urbvan's competencies and experience, offering advanced transport solutions to corporate clients and urban commuters.
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