SMRT

[brattzz]

Doubt on the SMRT new deal...

Dutch firm in SMRT deal may have money woes
06 May 2016 09:00
By Christopher Tan Senior Transport Correspondent

The Dutch company which transport operator SMRT joined hands with two weeks ago to provide automated shuttle services may be in financial difficulty.

Checks by The Straits Times revealed that 2getthere and its driverless freight-moving unit, Frog, had applied for insolvency in April 2007.

The company, led by Mr Carel van Helsdingen, has since been looking for financial backers.
...
Source: Straits Times

oppsss... looks like no due diligent was performed?
partner with insolvent co.

Dutch is quite clever in linking in SMRT, now see if SMRT willing to pump in money to save dutch and their own face??!

[CityFarmer]

Staff cost, will continue to increase, amid the competition...

(not vested)

Bus operator Tower Transit hikes staff's pay by 3.5%
18 May 2016 09:00
By Zhaki Abdullah

Tower Transit staff can expect a pay rise of 3.5 per cent starting this month, the bus operator announced yesterday.

The pay rise will benefit 913 of its employees, including the 812 bus drivers for the 26 routes it will operate from Bulim bus depot beginning on May 29.
...
Source: Straits Times

[brattzz]

halted liao... more non-safety hairline cracks discovered?

[egghead]

Deal reached with LTA

[brattzz]

"http://www.todayonline.com/singapore/deal-reached-govt-take-over-smrts-rail-assets"

"Deal reached for Govt to take over SMRT’s rail assets" The government will buy over SMRT's rail assets for about S$1 billion.

SMRT cash out assets liao, back to SG GOV.

LTA will conduct asset condition surveys for the older operating assets, and make payment for them in tranches: 60 per cent of the payment will be made on the date of transition, with 15 per cent, another 15 per cent and the last 10 per cent to be made on the next three anniversaries of the transition.



all ownership of SMRT rail assets -- like trains and signalling system -- will be transfered to LTA.

money flow,

CPF->SG GOV->LTA->SMRT->temasek->SG GOV->CPF... 1 round trip sir!

[desmondxyz]

Anyone can give some insight on how the deal impact on shareholders? Is it good deal or bad deal? My head was spinning after reading the annoucement.....

[opmi]

No money to shareholders?!

As at 30 September 2016, the Group's total debt is expected to be approximately S$762
million. The Company does not intend to use the proceeds from the Proposed Sale to pay a
special dividend to Shareholders. The Company instead will exercise prudence by using part
of the net proceeds from the Proposed Sale to retire part of its existing debt, a portion of
which was used to fund investments in its rail operating assets, for better management of the
Company's capital structure in order to meet its business objectives. The Company also
plans to invest the remaining proceeds in the strengthening and further development of its rail
engineering core competencies which it sees as critical for the future growth of the Group, so
as to enhance long-term shareholder value.

In addition, the Group will also be required to pay the Inland Revenue Authority of Singapore
the amount of approximately S$159 million as a tax payable on the difference between the
sales proceeds and the residual capital allowances relating to the Operating Assets.

brattzz: CPF->SG GOV->LTA->SMRT->IRAS & [NOTHING to temasek] -NOTHING->SG GOV--NOTHING-- >CPF... hahaha!

[brattzz]

"brattzz: CPF->SG GOV->LTA->SMRT->IRAS & [NOTHING to temasek] -NOTHING->SG GOV--NOTHING-- >CPF... hahaha!"...

oh no!!! 160milo to IRAS.... 840 milos stuck in SMRT.......

alamak!! wo de tian ya!!
我的天!!!

[CityFarmer]

Yes, a brief after run-thru of the announcement.

- No special div, the fund will be used to retire debts, and to fund future investment. This will disappoint most shareholders.
- The new formula, is based on EBIT margin of 5%. It is much better than the last reported EBIT margin - rail, of 1%, but less than good-old-days of double-digit percentage point, pre-2014.

(not vested, but monitoring)

[shadow_walker]

I think it is worse as it is 5% ebit margin of train fare + NON-FARE revenue.

Non-fare revenue includes transit rental and advertisement which generates $100 million in EBIT in FY 16, then new ebit will now be $40+ million based on 5% ebit margin of train + rental + advertisement revenue. EBIT margin is based on a complicated collar and cap structure that is skewed towards the downside.

Then again, I see this more as a bailout since SMRT will not have been able to afford the huge capex required with its balance sheet. SMRT has always been profitable if you take into account the non-fare profit.