Temasek Investor makes $3 billion bid to take control of Keppel Corp

Keppel Corporation of Singapore is being offered S$4.1 billion ($3 billion USD) by Singapore state investor Temasek Investor. The deal will increase support for conglomerate who has been battling difficult business conditions. Temasek does not plan to delist or privatize Keppel which will remain on the Singapore Stock exchange. 

Read: Dream11 Bermuda Vs Singapore: Team Prediction, Match News And Updates

Details of the deal 

Temasek will reportedly own 20.5% of Keppel and in a statement has said that pre-conditional offer is subject to obtaining domestic and foreign regulatory approval which can take the time of several months. Keppel's businesses range from rig-building to property development has been facing business-related challenges in its main sectors. 

Tan Chong Lee, who is Temasek International's President, has said that the partial offer reflects their view that there is inherently long term value in Keppel's businesses, nevertheless, the challenges presented by the current business and economic outlook. Temasek will seek to work with Keppel's board to undergo a strategic review if the business deal is finalized. 

As per reports, If successful it will result in Temasek and owning an aggregate 51% of Keppel.

Read: ICC T20 World Cup 2019 Qualifier: Singapore Beat Scotland By 2 Runs

The stock price of Keppel

Reports said that Temasek does not plan to delist or privatize Keppel which will remain on the Singapore Stock exchange. An indirect but fully owned subsidy shall offer Singapore $7.35 in cash for each Keppel share, which is a premium of nearly 26% over the last traded price of S$5.84. Share in Keppel was halted for trading on October 21. Morgan Stanley is the only financial adviser to Temasaek for the offer. 

Read: Singapore: Woman Who Got Drunk And Bit A Cop Gets 6 Months Jail

Keppel Corporation's recent performance

As per reports, On October 17, Keppel reported earnings of $159.3 million for Quarter 3 ending September which is a fall of 29.7% from $226.6 million the same year. It means earning per share of 8.8 cents for Quarter 3 of 2019 compared to 12.5 cents for Quarter 3 of 2018.

(With inputs from agencies)

Read: Dream11 Singapore Vs Scotland T20 Qualifier Predictions And Team News

Read: Singapore Adds Bangalore To Global Innovation Alliance