Keppel Corp launches bid to take Keppel Land private

Keppel Corp launches bid to take Keppel Land private

Keppel Corp, the world's largest maker of offshore oil rigs, currently owns 54.6 per cent of Kepland, a major Singapore property developer.

SINGAPORE: Keppel Corporation on Friday (Jan 23) launched a voluntary unconditional cash offer for all the remaining shares of subsidiary Keppel Land in a deal that values its property arm at S$7.1 billion.

Keppel Corp, the world's largest maker of offshore oil rigs, currently owns 54.6 per cent of Kepland, a major Singapore property developer.

Keppel Corp said it is offering a base offer price of S$4.38 for each Keppel Land share. A higher offer price of S$4.60 per share will be paid if Keppel Corp is entitled to exercise its rights of compulsory acquisition.

Explaining the rationale for the offer, Keppel Corp CEO Loh Chin Hua said Keppel Corp wants to be a strong conglomerate with sizeable contributions from its three core 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 added.

Kepland shares were last traded at S$3.65.

- CNA/ac

- wong chee tat :)