SBS Transit to receive S$29.2m from sale of operating assets

SBS Transit said that it will receive S$29.2 million from the sale of operating assets to the Land Transport Authority (LTA).

This is up from S$28.8 million as previously estimated, which was based on the net book value of the assets as at March 31, 2018.

The amount is payable in cash with 60 per cent upfront, and the remaining 40 per cent payable over two years, subject to certain conditions. There will be no gain or loss arising from the disposal. In April this year, the new rail financing framework replaced the existing asset-heavy model. As such, the LTA is buying over existing operating assets purchased by the company prior to the transition. 

SBS Transit is the operator of the North East Line (NEL) and Sengkang and Punggol Light Rapid Transit (SPLRT) systems.