SMRT

(19-07-2016, 11:08 PM)touzi Wrote:

(19-07-2016, 06:41 PM)d.o.g. Wrote:

(19-07-2016, 05:35 PM)yeokiwi Wrote: Temasek will privatise SMRT but holding SMRT in its portfolio is not a great idea since it is basically a deadweight with no growth.
They will strip out cash and inject the company at a later date into an infrastructure fund??

By definition, an infrastructure fund has to hold hard assets like bridges, roads, railways, ports etc. SMRT will only be a manpower contractor without any hard assets, and would not qualify. If SMRT gets privatized it seems unlikely that it will get listed again, as that would bring back all the shareholder-vs-commuter conflict of interest that led to all the breakdowns to begin with.

HK MTR is listed and I am sure they also have to manage shareholder-commuter conflict. Other businesses also have shareholder-customer conflict.

Just a thought,

Locally, PowerGas owns the gas pipelines while City Gas owns the town gas production facilities and uses the pipelines to sell town gas. The gas tariff is regulated by EMA and currently, City gas is the only town gas licensee in Singapore.

There is a certain similarity between LTA-SMRT and PowerGas-CityGas business models and so far, City Gas is doing its job well in Singapore despite owning a monopoly.

Operating rail infrastructure is certainly much more complex than pumping gas around Singapore. So, even there is an intention to offload SMRT from Temasek's portfolio, it will take a number of years for SMRT to be reliable, lean and efficient before it happens.

(19-07-2016, 07:22 PM)yawnyawn Wrote: Just like to point out that ComfortDelgro owns 75% of SBS Transit and neither Temasek nor GIC is the top shareholder of ComfortDelgro. It is unlikely that SBST will be privatised by the government.

Can Temasek buy from ComfortDelgro?

government contracting model

(20-07-2016, 09:16 AM)cif5000 Wrote:

(19-07-2016, 07:22 PM)yawnyawn Wrote: Just like to point out that ComfortDelgro owns 75% of SBS Transit and neither Temasek nor GIC is the top shareholder of ComfortDelgro. It is unlikely that SBST will be privatised by the government.

Can Temasek buy from ComfortDelgro?

I don't see a need to. In the first place, the government wanted more competition in the public bus service sector thus they introduce the Government Contracting Model(GCM) whereby LTA contracts operators to operate bus services through a competitive tender process.

^^ by the same token, there is no reason why Temasek would want to take over SMRT the operator

Unless reading between the lines, they somehow want to negotiate with LTA directly in private before the asset sale takes place.

Another question. When LTA acquires rail assets from SMRT, is it an interested party transaction(IPT)?

LTA - MOT
SMRT - Temasek - MOF.

All Govt. So can Temasek vote?

LTA buys assets from SMRT - a commercial transaction? So need AGM to vote?

If LTA acquires assets from SMRT via legislative acts, then no need to vote since it is by LAW ??

Any thoughts?

troublesome for temasek to extract the 1b out...
step by step!

Temasek to buy out SMRT at $1.68 using scheme of arrangement, which only need 75% yes votes not 90%

And yes it's a commercial significant transaction so need SMRT shareholders to vote, there is no law to force acquisition (not seizure) of asset except land, which will be weird for parliament to enact one now.

Absent any conspiracy theories about future sweetheart deals for Temasek, it seems quite possible that Temasek is being ordered to do national service in this case, as the price is very high relative to future earnings under the NRFF.

but... but...S$1.68 is low leh...considering the 1b stuck...

i REJECT the offer!

Offer $1.88 pls!

Where got $1bn. $850m debt no need to repay?

Maybe Temasek owned SMRT really no need to repay.