Offer price for SMRT 'fair'

An SMRT train travelling eastward from Paya Lebar MRT station as pedestrians walk along the pavement below the train on July 20, 2016.
An SMRT train travelling eastward from Paya Lebar MRT station as pedestrians walk along the pavement below the train on July 20, 2016.ST PHOTO: KUA CHEE SIONG

An independent financial adviser yesterday said Temasek Holdings' $1.68-a-share offer to take SMRT Corp private is "fair and reasonable".

Rothschild recommended that shareholders either vote in favour of the scheme at a meeting on Sept 29, or sell their shares in the open market if they are able to obtain a higher price.

Temasek wants to buy the 46 per cent of SMRT that it does not already own via a scheme of arrangement.

Privatisation is expected to give SMRT greater flexibility in delivering rail services without the short-term pressures of being a listed company.

It will also remove all costs and distractions associated with listing requirements, including quarterly reporting.

If the buyout succeeds, SMRT will be delisted from the Singapore Exchange.

SMRT shares were flat at $1.655 yesterday.

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A version of this article appeared in the print edition of The Straits Times on September 07, 2016, with the headline 'Offer price for SMRT 'fair''. Print Edition | Subscribe