Hot stock: SMRT surges 3% on bid to diversify into telco business

SHARES of SMRT Corporation surged on Thursday after the train operator suggested it may expand into the telecommunications business.

The stock jumped 5.5 Singapore cents, or 3.37 per cent, to S$1.685.

SMRT on Wednesday said it may invest up to S$34.5 million in OMGTEL, which is bidding for a telco licence in Singapore. It has entered into an agreement with OMG - run by wireless systems installer Consistel - to work exclusively with the company on the latter's bid.

SMRT added that its investment is contingent on, among other things, OMG winning the fourth telco licence, which MyRepublic is also eyeing.

Consistel reached an agreement with Singtel, StarHub and M1 last year to provide mobile coverage at the Singapore Sports Hub after a protracted standoff.