In what is probably the biggest news of the Singapore stock market in some time to come is that of Temasek, our state-owned sovereign wealth fund, looking to raise its stake in Keppel Corporation (SGX: BN4). This was announced after lunchtime today.
Temasek’s wholly-owned subsidiary, Kyanite Investment Holdings, is looking to purchase an additional 30.55% of Keppel Corp’s shares at S$7.35 each. Currently, Temasek already owns 20.45% of the listed conglomerate. If the deal goes through, Temasek’s and Kyanite’s total holding will rise to 51%.
The offer price represents a premium of around 26% over Keppel Corp’s last traded share price of S$5.84.
Temasek intends to keep Keppel Corp listed on the Singapore stock exchange.
If successful, Temasek wishes to undertake a thorough strategic review of Keppel Corp’s businesses to create sustainable value for all shareholders. The review could result in Keppel Corp “refocusing on and strengthening certain