High Court approves Temasek buyout of SMRT

SINGAPORE — The High Court has approved state-owned investment firm Temasek Holdings’ buyout of SMRT Corp, the transport operator said on Monday (Oct 17), adding that Tuesday will be the last day of trading of its shares on the Singapore Exchange.

An overwhelming majority of SMRT shareholders had voted on Sept 29 in favour of the privatisation offer by parent firm Temasek via a scheme of arrangement. A total of 84.8 per cent of SMRT’s minority shareholders collectively holding 92.9 per cent of the shares voted on supported the buyout. Temasek, which held about 54 per cent stake in SMRT, was not entitled to vote on the scheme.

The thumbs-up came after 98.8 per cent of the shareholders voted to approve the assets sale to the Land Transport Authority as part of the transition to the new rail financing framework.

Temasek’s wholly owned subsidiary Belford had proposed in July to buy the 46 per cent of SMRT shares that the state-owned fund does not already hold, by way of a scheme of arrangement at S$1.68 per share, or about S$1.2 billion in total.

In Monday’s statement, SMRT said the S$1.68-per-share payout is expected to take place by Nov 1.

“Subject to the satisfaction (or where applicable, waiver) of all the scheme conditions in accordance with the implementation agreement, the scheme shall become effective and binding upon the lodgement of the Court Order with the Accounting and Corporate Regulatory Authority,” it said.