Swan Taxis, the leading taxi operator in Western Australia, has advised the firm's shareholders to approve the takeover offer worth $38.8 million of ComfortDelGro, a transport company based in Singapore.

Kevin Foley, managing director and chairman of Swan Taxis, said the executive board has examined the bid thoroughly.

"[We are] satisfied it represented a strong return to shareholders and the best opportunity to develop the business to meet growing demand," he said in a statement today.

"For all our valued drivers and staff it will be business as usual," Mr. Foley added.

Swan Taxis said the 's proposition would not change its management and operation in Western Australia, and Mr. Foley would even stay with the unlisted firm to make sure there is stability and continuity within the future administration.

"ComfortDelGro intends to continue Swan Taxis' business without any major changes and ensures continued employment for existing Swan Taxis employees," the Swan Taxis chairman said.

ComfortDelGro is the second biggest transport firm in the world, and is also a major private bus operator in Victoria and New South Wales.

The transport company controls 75 per cent of shares in SBS Transit, which is listed with the Singapore Stock Exchange.