Temasaek Hodings, through its Belford Investments subsidiary, has reached an agreement to acquire all of the shares in Singapore metro operator SMRT Corporation.
Under the scheme, all scheme shares as at a book closure date to be announced by the company will be acquired by Belford for a cash consideration of USD 1.68 per share. With an outstanding issued share capital comprising 1,526,516,090 SMRT shares, the scheme price values SMRT at approximately USD 2.56 billion. Once the acquisition is completed, SMRT will become a wholly-owned subsidiary of Temasek and will be delisted from the Singapore Exchange.
The proposed acquisition will be effected by way of a scheme of arrangement, in accordance with the Singapore Companies Act and The Singapore Code on Take-overs and Mergers.
Privatisation will provide SMRT with greater flexibility to focus on its primary role of delivering safe and high quality rail service, without short term pressures of being a listed company, in the midst of its transition to a new regulatory framework under the New Rail Financing Framework.
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