Shares & Derivatives
Rolf’s Thoughts: Keppel (the son), Hoping for Temasek (the father) ‘s Partial Offer?
By Rolf Suey - Invest in Yourself  •  August 4, 2020
Keppel posted quarterly loss of a staggering SGD 697 million. This is mainly due to impairments of SGD 919 million from O&M segment. Excluding impairments, the company still reported quarterly net profit of SGD 222 million, boosted by other segment of the business such as property, infrastructure and investments. Last year Temasek proposed offer of SGD7.35 a share (including SGD0.15 dividend declared after the proposal date) of SGD4 billion to raise stake to 51 percent. This partial offer has a condition called Material Adverse Change (MAC) clause, stating that Keppel profit after tax must not fall more than 20% or below SGD557 million over the combined of four quarters from 3Q2019. Keppel current cumulative PAT until End Jun2020 is minus SGD165 million. This mean that to meet this condition, 3Q 2020 result must be at least SGD887 million. This is highly unlikely considering Keppel past years average quarterly profit hovered around SGD200 million....
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By Rolf Suey - Invest in Yourself
I am a Singaporean, born in the late 1970s experiencing mid-life career crisis at time of writing this blog. One reason to start blogging at an older age, is to break my own comfort zone. While it can be considered late, it is "Better Late Than Never" ...
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