Just yesterday, Temasek has announced that an indirectly wholly-owned subsidiary of Temasek Holdings – Kyanite Investment Holdings will be making a partial offer to acquire 30.55% of shares in Keppel Corporation at S$7.35 per share in cash. You may read more on this here. Currently, Temasek already owns 20.45% of Keppel Corporation and if the deal goes through, Temasek’s total holding will rise to 51%.
At the offer price of S$7.35, it represents a premium of approximately 26% over the last traded price of S$5.84 and a premium of approximately 21% over the volume weighted average price of S$6.07.
Do note, it is not Kyanite Investment Holdings’ intention to to delist or privatise the company and they would want the company to remain listed on SGX.
Before I share some thoughts on this deal, I will be sharing some background on the details of this partial offer and what it means.