SINGAPORE: Transport operator SMRT has announced that it has entered an agreement with OMGTEL (OMG) to work exclusively with OMG in connection with OMG’s bid for Singapore’s fourth wireless telecomunications carrier licence.
OMG is a company incorporated by local tech firm Consistel on Oct 20, 2014, for the purpose of bidding for the telco licence. It had originally announced its intentions to be the Republic’s fourth telco in October.
Under the announcement, which was posted on the Singapore Exchange on Wednesday (Apr 15), SMRT and OMG will collaborate on the provision of goods and services, and will seek to leverage SMRT’s extensive media presence and commuter reach.
“The above transaction is not expected to have a material impact on the company’s financial performance for the financial year ending Mar 31, 2016,” SMRT said.
The transport operator also announced that it was offered an opportunity to invest up to S$34.5 million via an option to subscribe for shares in OMG. The exercise of the option will be at SMRT’s election, and subject to OMG obtaining the telco licence, satisfactory due diligence on OMG, and the execution of definitive agreements between SMRT and OMG, among others, it said.
Another company vying to be the fourth telco is fibre broadband provider MyRepublic.
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