SMRT – BT
By WONG WEI KONG
SMRT Corporation Ltd, through its subsidiary SMRT Hong Kong Ltd, has entered into an agreement to acquire a 49 per cent equity interest in Shenzhen Zona Transportation Group Co Ltd (Zona), a leading road transport company in Shenzhen.
The S$89.7 million (US$62.8 million) acquisition is a significant overseas investment for SMRT. National Express Transportation Group Co Ltd (NE) will hold the remaining stake in Zona.
Said SMRT president and chief executive officer Saw Phaik Hwa: ‘This acquisition marks the beginning of a strategic relationship between SMRT and NE to further grow Zona’s transport services in Shenzhen and beyond…This acquisition is a milestone in the expansion of our business overseas.’
Following the acquisition, Zona will be an associate company under SMRT. The investment will be accretive to earnings. However, it is not expected to yield any material financial impact on SMRT’s full year FY2009 results.