Keppel is a Singaporean conglomerate, which is active across the oil and gas, power generation, renewable electricity, infrastructure and other sectors


Image: Temasek proposes to take controlling stake in Keppel. Photo: courtesy of aymane jdidi from Pixabay.

Temasek, through its subsidiary Kyanite Investment, has offered to acquire an additional stake of 30.55% in Singaporean conglomerate Keppel in a deal worth S$4.1bn ($3bn).

Keppel is active across the oil and gas, power generation, renewable electricity, infrastructure, and other sectors.

Kyanite Investment already owns a stake of 20.45% in the Singaporean conglomerate. The partial offer if converted into a successful transaction, will give Temasek and Kyanite Investment a stake of 51% in the conglomerate.

Temasek, which is a Singapore state-owned investment company, said that the intention of its offer is to ensure that Keppel continues to be listed on the Singapore Exchange (SGX-ST).

The investment company said that the offer if successful will enable other shareholders to monetise a part or potentially all of their ownership interests in Keppel, at a premium that will be more than the last traded price of the shares.

Currently, Kyanite Investment is offering to buy the additional stake at S$7.35 ($5.4) per share in cash.

Temasek will look to carry out a strategic review for Keppel

Temasek said that its subsidiary does not plan to delist or privatise the company. After the offer is successfully closed, Kyanite Investment will look to work with the board of directors of the company in carrying out a comprehensive strategic review of its businesses.

The objectives of the strategic review will be to generate significant value for Keppel’s shareholders.

Temasek International president and Kyanite Investment director Tan Chong Lee 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.

“The Partial Offer can only be made after the Pre-Conditions have been fulfilled or waived and this may take several months. For the Partial Offer to be successful, it will require both majority approval by shareholding of the votes cast and acceptances of not less than 30.55% of the total issued Shares.”

Earlier this month, Keppel’s subsidiary Keppel Offshore & Marine completed construction on a new jackup rig called Hermod for Borr Drilling, a Bermuda-based drilling contractor.

Hermod is the fourth of eleven jackup rigs that the company is constructing for Borr Drilling and it follows the delivery of the Saga, Skald, and Thor rigs to the drilling contractor.