Singapore's SMRT sought new finance framework ahead of stock surge -report

SINGAPORE, April 25 Thu Apr 24, 2014 9:54pm EDT

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SINGAPORE, April 25 (Reuters) - Singapore's SMRT Corp Ltd , the operator of the city-state's main rail network, asked the government on Wednesday about a financing framework which would reduce its capital expenditure, The Straits Times reported.

SMRT shares shot up on Thursday to close 19 percent higher, prompting a "trade with caution" alert from the Singapore stock exchange. The shares were trading 3.3 percent lower on Friday morning at S$1.175.

A spokeswoman for SMRT declined to comment on the Straits Times report, which did not cite sources.

SMRT has previously expressed interest in changing to a financing framework that was introduced by the government in 2010. Under this system, the government would own the assets, and be responsible for replacing them. This would free SMRT from having to incur huge capital expenditures on asset replacement. (Reporting by Andrew Toh; Editing by Edwina Gibbs)

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