Temasek in bid to take control of Keppel
Temasek, the Singaporean investment company owned by the Government of Singapore, has announced its plans to buy a controlling interest in Keppel Corporation.
Temasek, which currently owns 20,45 percent in Keppel, intends to offer S$7.35 per share for 30,55% Keppel shares, an offer estimated to be valued at ~S$4,1 billion.
The announcement of the intention to make an offer was made on the 21st October by Morgan Stanley, on behalf of Temasek’s subsidiary Kyanite Investment.
According to Temasek, the price to be offered implies a premium of approximately 26% over S$5.84, being the last traded price per share, and a premium of approximately 21% over S$6.07, being the volume-weighted average price per share (the “VWAP”) for the three-month period prior to and including Friday, the 18th October 2019.
If successful, the offer will result in Temasek owning an aggregate 51% of Keppel Corporation, an industrial giant best known to Offshore Energy Today’s readers through its offshore rig building subsidiary Keppel Offshore & Marine.
Temasek has said it does not intend to delist or privatize Keppel, which will remain listed on the SGX-ST.
Opportunity for shareholders, business review for Keppel
“The Partial Offer represents an opportunity for Offer Shareholders to realise part or potentially all of their investment at a premium over the last traded price of the Shares, and to participate in the future financial performance of the Company through their retained equity interest.
“Temasek’s long-standing governance model is to support its portfolio companies operating independently and on commercial principles. Temasek does not involve itself in the operating or business decisions of its portfolio companies; these are properly the responsibility of the boards and management teams of the companies,” Temasek said.
But, if the offer is successful, Temasek said it planned to work with Keppel’s board of directors in “undertaking a comprehensive strategic review of its businesses” with the objective of creating sustainable value for all shareholders.
Source: Offshore Energy Today