So literally the day after National Day, Temasek dropped this bombshell of a news: They will not be proceeding with the privatization / partial offer of Keppel Corp.
It’s a pretty big deal with knock on implications for the rest of Singapore’s stock market, so I wanted to share some quick thoughts.
Basics: Temasek makes S$4.1 billion bid to take control of Keppel Corp
But first, the background.
In October 2019, Temasek launched a S$4.1 billion bid to take control of Keppel Corp.
Before this, Temasek already owned 20.5% of Keppel Corp.
If the takeover is successful, Keppel would hold 51% of Keppel Corp. This majority stake would given them lots of control over the future direction of Keppel Corp.
The offer was for S$7.35 in cash for each Keppel share, which is a premium of nearly 26% over the then last traded price of S$5.84.
Of course, the rumour mill went into overdrive, and the prevailing thinking was that after Temasek