<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0><TBODY><TR>SMRT pays $90m for stake in Shenzhen group
</TR><!-- headline one : end --><TR>In first major foray abroad, SMRT begins 'strategic relationship' with National Express </TR><!-- Author --><TR><TD class="padlrt8 georgia11 darkgrey bold" colSpan=2>By Christopher Tan, Senior Correspondent
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Shenzhen Zona has grown rapidly, increasing its 300 public buses to 803 within six years. SMRT bought a 49 per cent share in the group and the remaining 51 per cent will remain with China's state-owned National Express Transportation Group. -- PHOTO: SHENZHEN ZONA
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<!-- START OF : div id="storytext"--><!-- more than 4 paragraphs -->TRANSPORT operator SMRT Corp has made its first major foray overseas, forking out $89.7 million to buy a 49 per cent share in a Shenzhen bus and taxi group.
Temasek Holdings-owned SMRT said it had entered into an agreement to acquire the stake in Shenzhen Zona Transportation Group from Shenzhen Zoto Investment.
<TABLE width=200 align=left valign="top"><TBODY><TR><TD class=padr8><!-- Vodcast --><!-- Background Story --><STYLE type=text/css> #related .quote {background-color:#E7F7FF; padding:8px;margin:0px 0px 5px 0px;} #related .quote .headline {font-family: Verdana, Arial, Helvetica, sans-serif; font-size:10px;font-weight:bold; border-bottom:3px double #007BFF; color:#036; text-transform:uppercase; padding-bottom:5px;} #related .quote .text {font-size:11px;color:#036;padding:5px 0px;} </STYLE>LOOKING AHEAD
'I am elated by the opportunity to partner such a dynamic, farsighted and highly effective organisation.'
</TD></TR></TBODY></TABLE>The remaining 51 per cent equity in Zona will remain in the hands of China's state-owned National Express Transportation Group.
Zona operates public buses, chartered buses, tourist coaches and taxis. It is involved in car leasing and vehicle repair as well. The company has 1,023 buses, 830 taxis and 260 leased cars.
A senior analyst in a foreign broking house observed: 'SMRT clearly wants to demonstrate that it can manage a business outside Singapore. Whether it can remains to be seen.'
SMRT president Saw Phaik Hwa said the acquisition 'marks the beginning of a strategic relationship' between Singapore's leading rail operator and National Express.
'I am elated by the opportunity to partner such a dynamic, farsighted and highly effective organisation,' she said.
National Express provides inter-city bus services in 67 cities within China.
With the acquisition, SMRT said Zona will become its associate company. It expects the investment to contribute to its bottom line, but said the impact would not be material for financial year 2009.
National Express chairman, Mr Wang Yong Li, said: 'We now have a strong partner to move forward together in the exciting and challenging world of transportation in Shenzhen and the rest of China.'
Shenzhen Zona has grown rapidly. It started with only 300 public buses in 2002, and within six years, had grown the fleet to 803. It expects future growth to be 'robust'.
Last year, it secured a government contract to operate buses in the growing Bao An district.
SMRT has sought to venture overseas for several years now. But its efforts pale in comparison to that of rival ComfortDelGro Corp, which has about half its revenue coming from markets such as Britain, China and Australia.
One analyst remarked: 'It should partner ComfortDelGro, which has so much information on China.''
An SMRT spokesman said the company has been in talks to buy the stake in Shenzhen Zona for about a year.
Asked about the Chinese company's profitability record, she would only say it 'has been profitable over the last three years'.
Last year, SMRT was appointed to operate a monorail service on Dubai's Palm Island. The monorail will link up with the Dubai Metro, the Persian Gulf's first commuter metro.
The driverless Palm monorail will carry up to 2,400 passengers per hour in each direction. The track is scheduled to open next month.
Some observers see the contract as a step towards more operating contracts in the Gulf. [email protected]
</TR><!-- headline one : end --><TR>In first major foray abroad, SMRT begins 'strategic relationship' with National Express </TR><!-- Author --><TR><TD class="padlrt8 georgia11 darkgrey bold" colSpan=2>By Christopher Tan, Senior Correspondent
</TD></TR><!-- show image if available --><TR vAlign=bottom><TD width=330>
</TD><TD width=10>
Shenzhen Zona has grown rapidly, increasing its 300 public buses to 803 within six years. SMRT bought a 49 per cent share in the group and the remaining 51 per cent will remain with China's state-owned National Express Transportation Group. -- PHOTO: SHENZHEN ZONA
</TD></TR></TBODY></TABLE>
<!-- START OF : div id="storytext"--><!-- more than 4 paragraphs -->TRANSPORT operator SMRT Corp has made its first major foray overseas, forking out $89.7 million to buy a 49 per cent share in a Shenzhen bus and taxi group.
Temasek Holdings-owned SMRT said it had entered into an agreement to acquire the stake in Shenzhen Zona Transportation Group from Shenzhen Zoto Investment.
<TABLE width=200 align=left valign="top"><TBODY><TR><TD class=padr8><!-- Vodcast --><!-- Background Story --><STYLE type=text/css> #related .quote {background-color:#E7F7FF; padding:8px;margin:0px 0px 5px 0px;} #related .quote .headline {font-family: Verdana, Arial, Helvetica, sans-serif; font-size:10px;font-weight:bold; border-bottom:3px double #007BFF; color:#036; text-transform:uppercase; padding-bottom:5px;} #related .quote .text {font-size:11px;color:#036;padding:5px 0px;} </STYLE>LOOKING AHEAD
'I am elated by the opportunity to partner such a dynamic, farsighted and highly effective organisation.'
</TD></TR></TBODY></TABLE>The remaining 51 per cent equity in Zona will remain in the hands of China's state-owned National Express Transportation Group.
Zona operates public buses, chartered buses, tourist coaches and taxis. It is involved in car leasing and vehicle repair as well. The company has 1,023 buses, 830 taxis and 260 leased cars.
A senior analyst in a foreign broking house observed: 'SMRT clearly wants to demonstrate that it can manage a business outside Singapore. Whether it can remains to be seen.'
SMRT president Saw Phaik Hwa said the acquisition 'marks the beginning of a strategic relationship' between Singapore's leading rail operator and National Express.
'I am elated by the opportunity to partner such a dynamic, farsighted and highly effective organisation,' she said.
National Express provides inter-city bus services in 67 cities within China.
With the acquisition, SMRT said Zona will become its associate company. It expects the investment to contribute to its bottom line, but said the impact would not be material for financial year 2009.
National Express chairman, Mr Wang Yong Li, said: 'We now have a strong partner to move forward together in the exciting and challenging world of transportation in Shenzhen and the rest of China.'
Shenzhen Zona has grown rapidly. It started with only 300 public buses in 2002, and within six years, had grown the fleet to 803. It expects future growth to be 'robust'.
Last year, it secured a government contract to operate buses in the growing Bao An district.
SMRT has sought to venture overseas for several years now. But its efforts pale in comparison to that of rival ComfortDelGro Corp, which has about half its revenue coming from markets such as Britain, China and Australia.
One analyst remarked: 'It should partner ComfortDelGro, which has so much information on China.''
An SMRT spokesman said the company has been in talks to buy the stake in Shenzhen Zona for about a year.
Asked about the Chinese company's profitability record, she would only say it 'has been profitable over the last three years'.
Last year, SMRT was appointed to operate a monorail service on Dubai's Palm Island. The monorail will link up with the Dubai Metro, the Persian Gulf's first commuter metro.
The driverless Palm monorail will carry up to 2,400 passengers per hour in each direction. The track is scheduled to open next month.
Some observers see the contract as a step towards more operating contracts in the Gulf. [email protected]
