SMRT backs out of potential $34.5m OMGTEL investment

It's staying focused on core businesses.

Fourth telco hopeful OMGTEL last week learned that SMRT Corporation is backing out of its potential $34.5m investment in the company's shares.

SMRT had signed a collaboration agreement with OMGTEL on April, wherein SMRT has the option to invest up to $34.5m in OMGTEL's shares and will provide marketing and outreach support for its telco licence bid.

"The Company wishes to announce its decision not to proceed to exercise the option granted to the Company to subscribe for shares in OMG. The Company has reviewed its capital allocation priorities and decided at this time not to take a passive interest in any investment, which would have been the case in the venture with OMG. Instead, the Company will continue to place its investment focus on business areas such as in rail engineering where the Company has an active interest," SMRT said in a statement to the SGX.