Singaporean sovereign wealth fund Temasek Holdings (Pte.) Ltd. is offering to acquire an additional 30.55% stake in conglomerate Keppel Corporation Ltd. to become its controlling shareholder with a 51% ownership.
Temasek plans to pay S$7.35 for each Keppel share, representing a premium of approximately 26% over the last traded price on Oct. 18, according to an Oct. 21 release. The sovereign wealth fund will make the offer through subsidiary Kyanite Investment Holdings Pte. Ltd.
Temasek, which owns 20.45% of Keppel, said it plans to conduct a comprehensive review of the target company's businesses if the offer is accepted. It added that it may propose new directors on the company's board to facilitate the review, which may result in Keppel refocusing on certain businesses or potential corporate actions that include M&A.
The offer is subject to regulatory approvals in Singapore and abroad. A formal offer will be made to Keppel shareholders once the proposal receives the approvals.
Temasek intends to keep Keppel listed if its offer is accepted.
Keppel is a Singapore-based investment holding company with businesses spanning from gas and oil infrastructure to asset management.
As of Oct. 21, US$1 was equivalent to S$1.36.