Temasek has withdrawn its pre-conditional S$4bn (€2.47bn) partial offer for Keppel Corp, citing material adverse change in Keppel’s financial performance and condition.
A Temasek company, Kyanite Investment, made the pre-conditional bid at S$7.35 per share to lift its holding to a controlling stake of 51%. Temasek currently owns 20% of Keppel Corp.
Keppel was hit by a massive S$919m impairment incurred by one of its subsidiaries, Keppel Offshore and Marine division, which reversed a S$153.1m net profit a year ago.
Temasek said on 1 August that based on Keppel’s unaudited consolidated financial results for the second quarter and the half-year ended 30 June 2020, the material adverse change pre-condition would not be satisfied.
Today, Temasek confirmed that it would invoke the precondition, and would not proceed with the takeover.
In an announcement, made through Morgan Stanley Asia Singapore, Temasek said the Securities Industry Council of Singapore had confirmed that it had no objection to Temasek invoking the clause.
To read the digital edition of the latest IPE Real Assets magazine click here.
