SINGAPORE (THE BUSINESS TIMES) - KS Investments, a wholly owned subsidiary of Keppel Offshore & Marine (Keppel O&M), is divesting its entire 51 per cent stake in each of Keppel Smit Towage and Maju Maritime for an aggregate cash consideration of $133 million.

The divestments to Rimorchiatori Mediterranei Spa are part of Keppel O&M's strategic review to streamline and divest its non-core assets, in line with Keppel Corp's Vision 2030 plans, Keppel Corp said in a bourse filing on Monday (Nov 15).

Keppel Corp expects to recognise a divestment gain of around $72 million from the transaction.

On a pro forma basis, had the divestments been completed on Dec 31, 2020, the group's net tangible asset per share would have increased to $5.06 from $5.02. Had the divestments been completed on Jan 1, 2020, loss per share for financial year 2020 would have reduced to $0.24 from $0.278.

The divestments are expected to be completed in 2022, following which the sale companies will cease to be subsidiaries of Keppel Corp.

The aggregate consideration was arrived at taking into account the sale companies' enterprise values, financial positions and business prospects, as well as book value and net asset value attributable to the sale shares.