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SMRT drops telco venture bid

It decides not to invest in OMGtel, the firm that is eyeing Singapore's 4th telco licence

Published Fri, Jun 5, 2015 · 09:50 PM

Singapore

TRAIN operator SMRT has backed out of a bid to venture into the telecommunications industry after facing a wave of criticism over whether it might be distracted from its core business of providing public transport.

It said in a Singapore Exchange filing on Friday that it has decided not to subscribe for shares in OMGtel, a subsidiary of wireless systems integrator Consistel that had been set up in October 2014 for the purpose of bidding for Singapore's fourth telco licence.

Adding that SMRT had "reviewed its capital allocation priorities and decided at this time not to take a passive interest in any investment, which would have been the case in the venture with OMG", the mainboard-listed group said that it would instead "continue to place its investment focus on business areas such as in rail engineering where the company has an act…

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