Swvl Holdings Corp (NASDAQ:SWVL) has sold one of its subsidiaries, Urbvan Mobility Ltd, a transport provider in Latin America, Kolors Inc, for $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.
The company 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 one 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.
“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,” said CEO Mostafa Kandil.
Swvl’s platform provides alternatives to public transportation for individuals who cannot access or afford private options.
Price Action: SWVL shares are trading higher by 16.67% at $1.19 on the last check Wednesday.
