Temasek Holdings intends to take majority control of Keppel Corp through a $4.08 billion offer for an additional 30.55 per cent of shares.
Temasek, Singapore's investment firm, said yesterday that its wholly owned subsidiary Kyanite Investment Holdings plans to make a partial offer at $7.35 per share in cash.
As Temasek directly owns 20.45 per cent of Keppel, the move, if successful, will raise its stake in the conglomerate to 51 per cent.
Temasek said the offer price is at a premium of about 26 per cent over the last traded price of $5.84 on Friday, and about 21 per cent above the three-month volume weighted average price of $6.07.
If the acquisition of the 554.9 million shares is successful, Kyanite intends to keep Keppel listed on the Singapore Exchange and to work with Keppel's board of directors on a comprehensive strategic review of its businesses, "with the objective of creating sustainable value for all shareholders".
This may include proposing new directors, said Temasek.
The offer will be made only if pre-conditions - like getting approvals from domestic and foreign regulatory agencies - are satisfied or waived by Oct 21 next year, or a later date if Kyanite applies for an extension in consultation with the Securities Industry Council.
Analysts said the move could pave the way for consolidation in Singapore's offshore and marine industry through a possible merger between Keppel's offshore and marine segment and Sembcorp Marine.
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