Advisory firm recommends that institutional investors accept offer for SMRT buyout

A SMRT train travelling from Jurong East interchange.
A SMRT train travelling from Jurong East interchange. PHOTO: AFP

SINGAPORE -Influential proxy advisory firm Institutional Shareholder Services (ISS) has weighed in on the offer by Temasek Holdings for the mainboard-listed SMRT Corp, recommending that institutional investors accept the offer.

ISS said in a report on Friday (Sept 16) "the valuation for the company's shares is generally in line or above the valuation for comparable companies and precedent takeovers".

The advisory firm noted that the offer of S$1.68 per share, to take SMRT private, is "a premium of 8.7 per cent to the unaffected price of the company's shares".

rachaelb@sph.com.sg