Temasek's bid to take majority stake in Keppel could signal consolidation, say analysts

With Temasek owning directly 20.45 per cent of Keppel, a successful partial offer to acquire 30.55 per cent by its wholly owned subsidiary Kyanite Investment Holdings will raise its stake to 51 per cent.
With Temasek owning directly 20.45 per cent of Keppel, a successful partial offer to acquire 30.55 per cent by its wholly owned subsidiary Kyanite Investment Holdings will raise its stake to 51 per cent.PHOTO: REUTERS

Temasek's proposed offer for majority share comes amid overcapacity in industry

With overcapacity in the global shipyard business, analysts said yesterday that Temasek Holdings' proposed $4.08 billion deal to take majority control of Keppel Corporation could pave the way for consolidation in Singapore's offshore and marine industry.

"Competition is only expected to increase as Chinese and South Korean shipyards continue to consolidate, thus creating industry heavyweights with a significantly larger footprint," said KGI Securities Singapore research head Joel Ng.

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A version of this article appeared in the print edition of The Straits Times on October 22, 2019, with the headline 'Bid for Keppel could signal consolidation, say analysts'. Print Edition | Subscribe