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SMRT to transfer 175 buses to LTA at net book value

SMRT Corp will transfer 175 buses to the Land Transport Authority (LTA) on May 31 in preparation for Singapore's new public bus contracting regime.

SMRT, a land transport operator with rail, bus and taxi units, said the buses were bought using loan facilities provided by the LTA under the government's Bus Service Enhancement Programme.

The consideration for the buses will be equivalent to their net book value, including all liabilities owed to LTA stemming from the loan facilities, so there will not be any impact on SMRT's net assets or earnings.

In dollar terms, however, the consideration is estimated to be about S$66.3 million, although the exact amount has yet to be fixed.