SINGAPORE: State investor Temasek Holdings on Monday (Oct 21) offered to take control of Keppel Corp in a S$4.1 billion deal that will shore up support for the conglomerate.
Temasek, which directly owns 20.5 per cent of Keppel, said in a statement that the pre-conditional offer is subject to it obtaining domestic and foreign regulatory approvals, which could take many months.
AdvertisementAdvertisementKeppel, whose businesses range from rig-building to property development, has been facing business challenges in its main sectors.
"The partial offer reflects our view that there is inherent long term value in Keppel's businesses, notwithstanding the challenges presented by the current business and economic outlook," Temasek International's president Tan Chong Lee said in the statement.
If the deal is closed, Temasek will seek to work with Keppel's board to undertake a strategic review of its businesses.
[h=3]READ: Temasek’s net portfolio value hits record high for third year running[/h] AdvertisementAdvertisement[h=3]READ: Keppel, Sembcorp Marine strike deals with embattled Brazil firm over oil rigs[/h]Temasek said it does not plan to delist or privatise Keppel, which would remain listed on Singapore Exchange.
An indirect fully owned subsidiary of Temasek will offer S$7.35 in cash for each Keppel share, a premium of nearly 26 per cent over the last traded price of S$5.84.
Shares in Keppel were halted for trading earlier on Monday. Morgan Stanley is the sole financier adviser to Temasek for the offer.
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