Brokers' take

SMRT Corp | Accept scheme

Fair value: S$1.40

Sept 15 close: S$1.655

OCBC Investment Research, Sept 15

SMRT Corp will be holding two key meetings on Sept 29: an extraordinary general meeting in relation to the proposed sale of rail operating assets as part of the transition to the new rail financing framework, and scheme meeting to seek shareholders' (excluding Temasek) approval for the S$1.68/share buyout by Temasek. With the meeting date approaching, we reiterate our view to accept the offer, by approving the scheme arrangement. We believe the scheme arrangement is a good opportunity for investor to cash out of a company with soft earnings outlook, especially given the high downside r…