Singapore’s sovereign wealth fund Temasek has made a S$4.1bn (€2.7bn) bid for a controlling stake in Keppel Corporation, the holding and investment management company for businesses which include Keppel Land and Keppel Capital.
Temasek currently owns 20.45% of Keppel and is offering S$7.35 a share in cash through its subsidiary Kyanite Investment Holdings, for another 30.55% of shares to lift its total holding to 51%.
Temasek said its offer price, which is subject to regulatory approvals, was at a premium of about 21% above Singaporean conglomerate’s three-month volume-weighted average price of S$6.07.
Keppel is involved in offshore & marine, property, infrastructure and asset management businesses.
Tan Chong Lee, president of Temasek International and a director of Kyanite, said: “The partial offer reflects our view that there is inherent long-term value in Keppel’s businesses, notwithstanding the challenges presented by the current business and economic outlook.”
Temasek said it had no intention of delisting or privatising Keppel, which would remain listed on the Singapore Exchange.
“Temasek does not involve itself in the operating or business decisions of its portfolio companies; these are properly the responsibility of the boards and management teams of the companies,” it said.
But following the successful close of the partial offer, Kyanite intended to work with Keppel’s board to undertake a comprehensive strategic review of its businesses, Temasek added, with the objective of creating sustainable value for all shareholders.