Comfort Delgro

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3.5 to slightly less than 4% for a global transport contractor with predetermined regulated growth - its a risky business especially since a super long term govt back union fund has bailed out.

Smells a big rat especially since transport costs is a big issue with the electorate. With huge supply constraint and mounting cost of living pressures, one should no longer look upon Comfort as a defensive counter.

Caveat Emptor

My guess is that this has something to do with NTUC appearing as a PTO in the future - this makes SMRT/SBS/NTUC as the 3 players for the rail+bus operations, of which NTUC will play a co-op role. The current 2 players will prob sell their assets to a public trust and in the future, they will bid for parcels of services for a lease-fee, and revenue goes to the G. It is then the G's problem to either raise transport fees or to subsidise operations through taxes.

In selling its stake to below 5% (hence ceasing to be a SSH), SLF, and in turn NTUC, prevents any conflict of interests in its future role.

Given that SBS is currently hardly profitable, this will probably be marginally +ve for CDG. Just my guess.