SINGAPORE, July 20 (Xinhua) -- Singapore investment firm Temasek Holdings has made an offer to buy over and take the country's public transport operator SMRT private at 1.68 Singapore dollars (1.24 U.S. dollars) per share, Temasek and SMRT jointly announced on Wednesday.
The offer from the Singapore state investment firm values SMRT at approximately 2.565 billion Singapore dollars (1.887 billion U.S. dollars), according to the joint press release.
Once the acquisition is completed, SMRT will become a wholly owned subsidiary of Temasek and will be delisted from Singapore Exchange.
"Privatization 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," said Temasek and SMRT.
SMRT is expected to face challenges, even under the new framework, with costs and uncertainties associated with an ageing and expanded network, according to the statement.
The public transport operator will also need to focus on delivering on existing and new multi-year program to support an ageing and expanded network, including the need to deliver a higher order of rail reliability and service in line with the heightened Maintenance Performance Standards to be determined by Singapore's Land Transport Authority (LTA).
According to SMRT's website, Temasek is its biggest shareholder. Temasek's proposal is pending the approval of company's other shareholders.
The news comes after the Singapore government announced on July 15 that it will take over all operating assets of the North-South, East-West and Circle lines, as well as the Bukit Panjang Light Rail Transit Line, from SMRT for 1.06 billion Singapore dollars (779.6 million U.S. dollars). A trading halt of SMRT's shares was called on July 15.
