Singapore’s state investor Temasek Holdings is set to announce plans this week to buy out the remaining nearly 46 percent of rail and taxi group SMRT Corp that it does not already own, two sources with knowledge of the matter said.
The move comes after the Singapore government said last week it will buy almost S$1 billion ($742 million) worth of metro train assets from SMRT to allow the country’s main rail operator to focus on providing reliable and well-maintained services.
Temasek owns about 54.5 percent of SMRT, according to Thomsom Reuters data.
The company has a market value of about $1.8 billion.
The valuation for the deal was unclear given reduced future margins for SMRT once it starts operating as an asset light company after some of its assets shift to the government and it retires debt, said one of the sources.
The sources declined to be identified because of the sensitivity of the matter.
Temasek and SMRT declined to comment.
SMRT shares have been halted for trading since Friday.
The buyout plan was reported earlier by Bloomberg News.