SBS Transit’s wholly-owned subsidiary, SBS Transit Rail (SBST Rail) has increased its issued and paid-up share capital to $100 million from $5 million.
This is done by allotting and issuing 95 million new ordinary shares to SBS Transit for consideration of conversion and discharge of $95 million receivable, owing by SBST Rail to the parent company at $1 per share.
Payable in full upon allotment, the new ordinary shares shall rank pari passu in all respects with the existing issued shares of SBST Rail, the company said in a filing.
This exercise is not expected to have any material impact on the net tangible assets or earnings per share of SBS Transit for the financial year ending December 31, 2021.
This follows a Nov 11 announcement regarding Downtown Line’s transition to the New Rail Financing Framework Version 2, similar to that which the North East Line and Sengkang Punggol LRT Lines are already on.
The new framework will reduce commercial volatility for SBS Transit as it works at delivering a reliable and financially sustainable public rail service, the company said.
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Separately, SBST Rail has also appointed three independent non-executive directors — namely Bob Tan Beng Hai, Lim Seh Chun and Leong Yim Sing, with effect from Jan 1, 2022. Leong was SBS Transit’s head of rail prior to his retirement in April 2021.
Jeffrey Sim Vee Ming, who is SBS Transit’s acting head of rail will be the CEO of SBST Rail, while Alex Goei Beng Guan will be designated as SBST Rail’s head of Downtown Line.
