SMRT CORPORATION LTD
S53.SI
SMRT Corporation Limited - Accept the scheme at the meeting today
- SMRT Corporation Limited (SMRT) has requested for trading halt as it will be holding two key meetings today:
- an EGM to seek shareholders’ approval for the sale of rail assets to government, and
- scheme meeting to seek shareholders’ (excluding Temasek) approval for the S$1.68/share buyout by Temasek (“Scheme Meeting”).
- In our view, the recent media report on SMRT participating in a public tender in Bandung City (Indonesia) project is irrelevant.
- While the outcome of the tender evaluation has yet to be announced, we think SMRT’s earnings may see further erosion due to higher than expected expenses should they win the tender for this project.
- Hence, in view of weak earnings outlook, we would like to reiterate our view to ACCEPT THE OFFER, by approving the scheme arrangement. Note that the Scheme Meeting is scheduled to commence at 3.30pm this afternoon.
Eugene Chua
OCBC Investment
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http://www.ocbcresearch.com/
2016-09-29
OCBC Investment
SGX Stock
Analyst Report
1.40
Same
1.400
