SMRT partners with OMG in bid for Singapore telco license
In an announcement after the market closed today, transport operator SMRT announced that it may invest up to S$34.5 million in one of Singapore's fourth telco contender.
This is to "leverage on synergies that can be derived from the company’s extensive media presence and commuter reach", SMRT said in the statement.
The company SMRT is partnering with, for the license bid, is OMGTEL Pte. Ltd., a company incorporated in Singapore by Consistel Pte Ltd on 20 October 2014 for the purpose of bidding for the country's fourth telco license.
According to media reports, Consistel came to prominence after a $1.33 billion deal with the Sports Hub to build and host all its wireless systems. Consistel had declared its intention to bid for the fourth telco licence in October last year. It is in competition with local fibre broadband service provider MyRepublic.
SMRT said it has been offered an opportunity to invest up to $34.5 million via an option to subscribe for shares in OMG -- the exercise of the option is subject to, among others, the attainment of the telco license by OMG.
SMRT further added in its statement that the agreement is not expected to have a material impact on its financial performance for the financial year ending 31 March 2016.
