SINGAPORE – Temasek Holdings is set to take control of conglomerate Keppel Corporation with an offer by its wholly-owned subsidiary Kyanite Investment Holdings to acquire an additional 30.55 per cent of Keppel shares at $7.35 apiece.
If successful, this will bump Temasek and Kyanite’s total holding up to 51 per cent, on top of Temasek’s current direct holding of a 20.45 per cent stake in the conglomerate.
Temasek intends to keep Keppel listed on the Singapore Exchange, the state investment firm said in a media statement on Monday afternoon.
The offer price of $7.35 per share is at a premium of about 26 per cent over the last traded price, and 21 per cent over the three-month volume weighted average price, prior to and including the last traded date.
The pre-conditional cash partial offer represents an opportunity for shareholders to monetise part or potentially all of their investment in Keppel, at a premium over the last traded price of the shares, Temasek said.
After the successful close of the offer, Kyanite intends to work with Keppel’s board of directors to undertake a comprehensive strategic review of its businesses with the objective of creating sustainable value for all shareholders.
To facilitate this strategic review, Kyanite may propose new directors to Keppel’s board after the close of the offer.
The pre-conditions for the offer include domestic and foreign regulatory approvals being obtained. The offer will only be made if and when each of the pre-conditions is satisfied or waived, and this process is expected to take several months.
The offer will require both majority approval by shareholding of votes cast as well as acceptances of not less than 30.55 per cent of the total issued shares.