Singapore’s Keppel Corporation plans to privatise Keppel Land by acquiring the remaining un-owned shares in the developer for up to $3.6 billion.
At present, the world’s biggest offshore oil rig builder owns 54.6 percent of Keppel Land.
Last Friday, the company initiated a voluntary unconditional cash offer for all of Keppel Land’s remaining shares for $4.38 apiece, which is 20 percent higher than its last traded price of $3.65 apiece. But Keppel Corp offered a heftier price of S$4.60 per share if it’s entitled to exercise its rights of compulsory acquisition under the Companies Act.
This brings the developer’s total market capitalisation to between $6.8 billion and $7.1 billion.
“We believe what we have offered for the remaining stake in Keppel Land in this current depressed property market is fair, this offer will be funded through a combination of internal cash and borrowings of Keppel Corporation,” said its Chief Financial Officer (CFO) Chan Hon Chew.
Explaining the reason for the move, Keppel Corp CEO Loh Chin Hua said the company wants to build a strong conglomerate with significant contributions from its three main businesses.
“This is a sound and well-timed investment in a business which has been integral to Keppel Corp and is in core markets like Singapore, China, Indonesia and Vietnam – where we hold a long-term positive view,” he said.
Muneerah Bee, Senior Journalist at PropertyGuru, edited this story. To contact her about this or other stories email muneerah@propertyguru.com.sg
