Keppel mulls over transaction involving stake in Keppel T&T

Keppel Telecommunications & Transportation is one of the leading Singaporean logistics service providers in China, with operations in cities such as Foshan (above). Keppel Corp approached Singapore Press Holdings to take part in a possible transactio
Keppel Telecommunications & Transportation is one of the leading Singaporean logistics service providers in China, with operations in cities such as Foshan (above). PHOTO: KEPPEL CORPORATION
Keppel Telecommunications & Transportation is one of the leading Singaporean logistics service providers in China, with operations in cities such as Foshan (above). Keppel Corp approached Singapore Press Holdings to take part in a possible transactio
Keppel Corp approached Singapore Press Holdings to take part in a possible transaction involving their stakes in listed telco M1, according to filings with the Singapore Exchange yesterday morning.ST FILE PHOTO

Keppel Corp is considering a potential transaction of its stake in logistics and data centre arm Keppel Telecommunications & Transportation (Keppel T&T) and has approached Singapore Press Holdings (SPH) to take part in a possible transaction involving their stakes in listed telco M1, according to filings with the Singapore Exchange yesterday morning.

No specific deal terms were announced.

There is no certainty or assurance that any transaction will occur, Keppel Corp and SPH said in concurrent announcements.

Keppel Corp, a conglomerate whose businesses include rig building and real estate, held a 79.2 per cent stake in Keppel T&T as of March 5.

Through Keppel T&T, Keppel also holds interests in Keppel DC Reit, a data centre trust, and M1, Singapore's third-largest telco.

Based on Keppel T&T's closing price of $1.36 last Friday, Keppel Corp's stake is worth about $602 million. Trading in Keppel T&T was halted yesterday.

Keppel T&T controlled a 19.33 per cent stake in M1 as of Feb 22 while SPH, a media and property group, held a 13.45 per cent stake.

Based on M1's close of $1.63 last Friday, Keppel T&T's stake in M1 has a market value of $292 million, while SPH's has a market value of $203 million. Trading in M1 shares was also halted yesterday.

Malaysian telco Axiata Group, with a 28.7 per cent stake in M1, is the telco's largest single shareholder.

In March last year, SPH, Keppel T&T and Axiata jointly appointed Morgan Stanley Asia as a financial adviser to undertake a strategic review of their stakes in M1, with a view to a possible sale.

In July that year, the three parties decided not to proceed further with the review, saying proposals from interested parties did not meet their minimum criteria and parameters despite a favourable level of interest.

No arrangement or agreement with any third party was reached at that time.

Keppel Corp closed three cents lower at $7 yesterday, while SPH fell two cents to $2.80.

A version of this article appeared in the print edition of The Straits Times on September 25, 2018, with the headline 'Keppel mulls over transaction involving stake in Keppel T&T'. Print Edition | Subscribe