What you need to know about SMRT's upcoming shareholders scheme meeting

Two conditions must be met to approve privatisation.

It may already be the end of the road for SMRT’s privatisation journey as minority shareholders will be voting by the end of the month whether they will accept Temasek’s offer to buy the whole of the transport business. The scheme arrangement, however, will only be considered successful if it meets two conditions at the scheme meeting.

According to SMRT, of the total number of shareholders present and voting in person or by proxy at the meeting, more than 50% by headcount must vote to approve the scheme.

The second condition, meanwhile, requires at least 75% of the shares voted by shareholders present or by proxy in the meeting to be pro-scheme votes in order to approve the buyout by Temasek’s wholly-owned subsidiary, Belford.

If the scheme arrangement is approved by minority of shareholders, they will receive $1.68 in cash per share within seven business days from the date the scheme takes effect.

“If the scheme is successful, SMRT shares will no longer be traded on the Singapore Exchange,” SMRT said.