SMRT

The latest PPT from SMRT on the "deal". The total train biz EBIT (fare + non-fare) was 78 million, with EBIT margin 9.5%. The new formula, enable the risk-sharing and also profit sharing among LTA/SMRT in rail operation. SMRT get less, but more secured biz from the "deal".

http://infopub.sgx.com/FileOpen/Slides%2...eID=413002

Security now last only 15 years

I think this deal is pretty watershed on the govt's thinking of what is a reasonable margin for transport business in an operator model. I'm not sure how the profit collar works in reality ie for example does a one year bonus for staff pushing OM to below 3.5% qualify? But of course on the structure side transport companies can improve the ROE through capital management but without sizable assets it will be limited.

I think it is a good deal for the public consumer. I think the operator model is a good compromise between capex spending for public / social infrastructure vs Singapore Inc mentality.

(18-07-2016, 10:01 AM)specuvestor Wrote: Security now last only 15 years

I think this deal is pretty watershed on the govt's thinking of what is a reasonable margin for transport business in an operator model. I'm not sure how the profit collar works in reality ie for example does a one year bonus for staff pushing OM to below 3.5% qualify? But of course on the structure side transport companies can improve the ROE through capital management but without sizable assets it will be limited.

I think it is a good deal for the public consumer. I think the operator model is a good compromise between capex spending for public / social infrastructure vs Singapore Inc mentality.

I believe the BOD will know what not to do.

SMRT Corporation Ltd wishes to announce a continuation of the trading halt pending a possible  announcement

(18-07-2016, 12:09 PM)Vseeker Wrote: SMRT Corporation Ltd wishes to announce a continuation of the trading halt pending a possible  announcement

Temasek take over? 

brattzz: CPF->SG GOV->LTA->SMRT->IRAS & [NOTHING to temasek] -NOTHING->SG GOV--NOTHING-- >CPF
            
[New flow?]:  Temasek > buyout > SMRT shareholders. Yay! Hahaha...

Dont see the need to privatise leh...the current model: keep high capex assets. outsource to competing private operators. Quite good leh...

maybe Temasek (54.1% stake holder in SMRT) saying "I'm abstaining !!, all ye OPMIs go take on LTA+Min Transp... if not happy with the deal...

Spot on. temasek considering bid to privatize SMRT.

http://www.straitstimes.com/business/com...mrt-report

At price-to-book of 2.5? Seems hardly worth it.

Temasek only need to beat 2.5% OA rate?! Hahaha.

(18-07-2016, 01:26 PM)opmi Wrote: Temasek only need to beat 2.5% OA rate?! Hahaha.

our "old and trusted" opmi has once again, got a prediction spot on..ahha

anyways, Temasek doesn't use CPF funds to invest, if that is what you are insinuating.