,Singapore

SPH shareholders to receive $2.099 per share following acquisition by Keppel

Keppel Corp has proposed the acquisition of SPH, minus its media assets, for $2.2b.

Singapore Press Holdings (SPH), which had recently divested of all its media properties, has announced what each shareholder would receive following Keppel’s proposed acquisition of the company.

In a bourse disclosure, SPH said each of its shareholders will receive a total of $2.099 per share, comprised of $0.668 cash per share, 0.596 Keppel REIT units valued at $0.715 per share, and 0.782 SPH REIT units valued at $0.716 per share from a distribution in-specie by SPH.

The scheme posts a 39.9% premium on the last trade price of SPH shares at $1.5 per unit before the strategic review of SPH’s businesses was announced end-March. This is also an 11.6% premium on the last share price of $1.88 per unit as of end July.

“The outcome is the result of a strategic review process that has taken place over many months. We took the first step with Media Restructuring to ensure a sustainable future for the media business, while removing its losses from SPH. The next step was a thorough process to unlock and maximise value for all shareholders for the remaining company. With the privatisation offer from Keppel, shareholders now have an opportunity to realise the value of their SPH shares at a premium of 39.9% to the last traded price before the Strategic Review was announced,” said SPH CEO Ng Yat Chung.

Keppel CEO Loh Chin Hua said the offer is a good deal for both companies.

“I think it is win-win, as I mentioned. It is a very unique and rare opportunity, an attractive opportunity for Keppel. But it is also a very good opportunity, we believe, for SPH unitholders to realise their investment, post the media demerger or spin-off,” he said in a media briefing Monday.

OCBC Investment Research likewise said that it is a fair deal.

“In our view, the deal looks fair in both unlocking value for SPH shareholders and avoiding a situation where prime assets may be cherry-picked, while the receipt of SPHREIT and KREIT units will allow shareholders to still participate in the recovery prospects of the retail and commercial real estate segments at attractive dividend yields (historical average yields ~4% range),” it said in a report.

In a separate report, OCBC said Keppel Corp could monetize over $3b to $5b of SPH’s assets, carrying a total value of $17.5b, over the next three years.

Join Singapore Business Review community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

HongKongLand had the most growth for the day.
It surpassed the Bloomberg consensus estimate of 14.5%.
The agreement aims to grow tourism and economic activities as borders reopen. 
It will also enter a loan agreement worth $210.6m.
The acquisition will be fully funded by cash through internal resources.
These countries are Cambodia, the Maldives, Sri Lanka, Thailand, and Turkey.
The decrease was driven by profit declines in their beer and non-alcoholic businesses.
Sources say the state-owned Chinese firm is in talks with advisers about the potential divestment.
The tests start on 29 November.
Exercise CyberMaritime 2021 puts the sector's cybersecurity readiness to the test.
This is equivalent to 236 attackers per company in a year.
Genting Singapore was seen with the most growth.
The partnerships aim to improve care delivery and patient outcomes.