SINGAPORE, July 18 — Singapore state investment company Temasek Holdings Pte is considering a buyout offer for SMRT Corp, the city-state’s biggest subway operator, a person with knowledge of the matter said.
Temasek is weighing an offer to buy all the shares it doesn’t already own in SMRT, according to the person, who asked not to be identified as the information is private. It currently has a 54 percent stake in SMRT, which has a market value of about S$2.4 billion (RM6.8 billion) in Singapore, data compiled by Bloomberg show.
SMRT has faced public criticism for service disruptions in the past four years even as it expanded its network. Singapore announced Friday that SMRT will transfer S$991 million of rail, signal and related assets to the national transport regulator, giving the company funds to recruit more staff and improve train maintenance.
Shares of SMRT were halted from trading Friday before the asset sale announcement. The company said Monday it will continue the trading halt, pending another possible announcement. The potential buyout offer is still being discussed and there’s no certainty it will result in a deal, according to the people.
“We don’t comment on market speculation or rumors,” Stephen Forshaw, a spokesman for Temasek, said by e-mail. A representative for SMRT didn’t immediately respond to an e-mail seeking comment.
SMRT currently operates three metro rail lines in Singapore, while rival SBS Transit Ltd. runs two. Singapore is building its sixth line that will start operations in 2019. — Bloomberg
