SALE OF NEW BUSES AND NOVATION OF CONTRACTS TO LAND
TRANSPORT AUTHORITY
1. SBS Transit Ltd (the
‘Company’) wishes to announce that it has signed a Letter Of Intent
(‘LOI’) with the Land Transport Authority (‘LTA’) for the
following:-
(i) Sale of 50 new buses
(‘Buses’) purchased by the Company from June 2015 to December 2015
to LTA. The Buses comprise 12 Single Deck buses and 38 Double Deck
buses. The purchase consideration for the Buses will be at their
respective Net Book Value (NBV) as at 31 December 2015 (‘Effective
Date’). The total NBV of the Buses as at Effective Date amounts to
approximately $23 million, representing 6.8% of the consolidated
Net Asset Value of $338 million (as at 30 November 2015);
and
(ii) Novation of procurement
contracts (‘Contracts’) by the Company for purchase of new buses
scheduled for delivery for 2016 and 2017 to LTA. The Contracts
involve a total of 346 new buses comprising 100 Single Deck buses
and 246 Double Deck buses with a contracted value of approximately
$164 million. Out of the 346 buses, 210 buses are scheduled for
delivery in 2016 and the remaining 136 buses in 2017.
2. The Company will be signing
the relevant agreements with LTA for the sale of the Buses referred
to in 1(i) and the novation of Contracts referred to in 1(ii).
Following this, the Company will lease the affected buses from LTA
for its operation until such time that these buses are handed over
to the operators of the tendered contracts under the Government
Contracting Model for bus services.
3. The above does not have any
impact on the net tangible assets per share and the earnings per
share of the Company for the financial year ending 31 December
2015.
4. None of the Directors and
controlling shareholders of the Company have an interest, direct or
indirect, in the above.
BY ORDER OF THE
BOARD
Chan Wan Tak,
Wendy
Company
Secretary
29 December 2015
http://www.sbstransit.com.sg/download/sale_of_new%20buses_and_novation_of_contracts_to_lta.pdf
Thanks for the info.
The 50 new buses, are they being purchased from SBS BSEP or
non-BSEP orders?