Temasek pulls out of offer to buy control of Keppel

Keppel swung to a net loss of $697 million for April to June, from a net profit of $153 million a year earlier. PHOTO: REUTERS

Singapore investment company Temasek is walking away from its $4.1 billion conditional offer to buy control of Keppel Corp.

This comes after Keppel posted a second-quarter net loss of $697.6 million, breaching a precondition for Temasek's offer.

Kyanite Investment Holdings, a unit of Temasek, invoked a material adverse change clause in pulling out of the deal, according to a bourse filing yesterday.

The Securities Industry Council of Singapore said it has no objection to Temasek invoking the clause and pulling out of the deal.

In October last year, Temasek offered to increase its one-fifth stake in Keppel to 51 per cent by buying an additional 30.6 per cent stake at $7.35 per share.

But Keppel's stock has tumbled about 20 per cent this year amid the Covid-19 pandemic.


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A version of this article appeared in the print edition of The Straits Times on August 11, 2020, with the headline Temasek pulls out of offer to buy control of Keppel. Subscribe