Here’s what will happen if Temasek’s takeover offer for SMRT fails

A repeat takeover bid would be unlikely.

At the onset of the new rail financing model, majority shareholder Temasek aggressively campaigned to fully takeover transportation giant SMRT to focus on improving its services.

However, according to a report by UOB Kay Hian, if the takeover offer fails, Temasek won’t be able to acquire any shares of SMRT soon.

“The Scheme of Arrangement as discussed herein is subject to compliance with the Singapore Code on Takeovers and Mergers administered by the Securities Industry Council (SIC),” the report by UOB Kay Hian noted.

“Our understanding of Rule 34 of the code indicates that in the event a take-over offer is unsuccessful, except with the consent of SIC, an offeror (and its concert parties) of a failed offer may not within 12 months from the date on which the offer is withdrawn or lapsed, make an offer or acquire any shares of the offeree company,” UOB Kay Hian said.