Press Statement: SMRT Privatisation Offer

Date: July 28, 2016

SMRT and Temasek recently announced the privatisation of SMRT with the rationale that while the New Rail Financing Framework (NRFF) would relieve SMRT from heavy capital expenditure requirements and reduce the risk of the company, there are still other business risks and uncertainties that SMRT faces and privatisation would provide SMRT with greater flexibility to focus on providing safe and high quality rail service, without short term pressures of being a listed company.

SIAS has received concerns from SMRT shareholders relating to the privatisation of SMRT, which came as a surprise, and without any indication at the recent AGM.

Shareholders have raised their concerns as to why Temasek is pursuing the privatisation deal through a scheme of arrangement rather than a general offer. Long term shareholders of SMRT have also asked why no special dividends from the sale of assets of $991 million under the proposed NRFF. Shareholders have also asked SIAS if the price offered is fair. Temasek has announced a cash offer of $1.68 per share.

SIAS will meet with SMRT directors and Temasek officials separately in due course to raise the aforesaid concerns of shareholders. SIAS will also arrange a dialogue session with shareholders with the Board and senior management of SMRT and its shareholders in due course on their concerns. SMRT shareholders interested to attend the dialogue session should register their interest with SIAS via email at

David Gerald
Founder, President & CEO
Securities Investors Association (Singapore)