Temasek seeks to take over Keppel with $4.1b deal

The holding firm will increase its stake to 51%.

Kyanite Investment Holdings, an indirect wholly-owned subsidiary of Temasek, has proposed an offer to buy 30.55% of Keppel Corporation’s shares for about $4.1b (US$3b) or $7.35 apiece, an announcement revealed.

The deal will boost Temasek’s stake in Keppel from 20.45% to 51%.

The deal would also imply a premium of approximately 26% over $5.84, being the last traded price per share, and a premium of approximately 21% over $6.07.

“Following the successful close of the Partial Offer, the Offeror intends to work with the board of directors of the Company in undertaking a comprehensive strategic review of its businesses with the objective of creating sustainable value for all Shareholders. In order to facilitate such a Strategic Review, the Offeror may propose new directors to the board of directors of the Company after the close of the Partial Offer,” Keppel Corp said in a filing.

Temasek assured that they do not intend to have Keppel delisted from SGX.

For July-September, Keppel’s profits crashed 29.7% QoQ to $159.28m due to the absence of gains from selling a commercial development in Beijing and higher net interest expense.