Returning SMRT to the state
Christopher Tan
Senior Transport Correspondent
Published
Jul 20, 2016, 5:00 am SGT
If Temasek delists SMRT Corp and takes it private, it would have come full circle to a point in time 20 years ago when it mooted the idea of floating the transport operator to unlock its value.
The motivation to delist will be somewhat different, though. In essence, it will be part of a bigger picture to bring public transport to a higher level.
Not that a listed entity cannot also be an excellent public transport operator - just look at Hong Kong's MTR Corp, which has been exceedingly successful in serving commuters and rewarding its shareholders.
But sometimes, when an entity is set up to serve multiple masters, it could well end up serving none. In the case of SMRT, it is clear that it has been trying valiantly to juggle opposing interests.
And fairly or unfairly, it has been getting a lot of flak of late for enriching shareholders at the expense of commuters.
Delisting removes this tension. There will no longer be pressure from the market to see which stock gives the best dividend yield.
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