Singapore state investment firm Temasek Holdings made an offer on Wednesday to buy a nearly 46 percent stake in SMRT Corp Ltd at $1.68 per share.

Temasek already owns 54 per cent of SMRT, which is valued at close to $2.4 billion, based on Friday's price. The firm will allocate about $1.18 billion for the rest of the company that it does not own.

Singapore is known for its efficient and reliable public transport infrastructure, but in recent years SMRT has come under serious criticism after a series of train disruptions leading to public complaints.

Last week, the government announced that it will take over almost $1.06 billion worth of operating assets from SMRT to allow the public transport operator to focus on its primary role of providing reliable and well-maintained services for its commuters and free it from costs and distractions.

Temasek and SMRT said in a statement that they have accepted the New Rail Financing Framework (NRFF), as part of a regulatory transition.

"Privatisation will provide SMRT greater flexibility to focus on its primary role of delivering safe and high quality rail service, without short term pressures of being a listed company, in the midst of its transition to a new regulatory framework under the New Rail Financing Framework," the statement said.

When the deal is completed SMRT will become a wholly owned subsidiary of Temasek and will be delisted from the Singapore stock exchange.