SMRT to transfer ownership of train assets to LTA
SMRT Corp will transfer the ownership of its rail assets, including trains and signalling systems, to the Land Transport Authority (LTA) for S$991 million.
This is subject to shareholders' approval.
"The transition will benefit commuters,'' LTA said.
On Friday, SMRT opened at S$1.550. The shares were trading around S$1.545 each, up half a cent, or 0.32 per cent, when the train and taxi operator shocked the market with a request for an "immediate halt" in the trading of its shares around noon. More than three million shares changed hands.
"The most likely reason is the development of the Rail Financing Framework, which has been much talked about,'' a broker had speculated, referring to new business model for Singapore's public bus industry which will be introduced in stages. One of the key differences between the old and new model is that under the new model, the government will assume ownership of all bus services-related infrastructure and assets.
An analyst had earlier told The Business Times that the new model would have a positive impact on SMRT's share price.
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Companies & Markets
AI fuels cloud computing boom for tech giants
AMD slides after AI chip forecast misses lofty estimates
IBM wins reversal of US$1.6 billion poaching award to BMC
Binance founder Zhao Changpeng gets 4 months in prison
Singapore Airlines could post highest-ever earnings of about S$2.7 billion for FY2024, says analyst
Amazon’s Twitch starts rival to TikTok in short-form video