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Ilya St
October 21 10:38

Temasek Holding to acquire Keppel Corp

Earlier on Monday, all trading operations were stopped for Keppel's shares. The last trading price on Singapore stock exchange was at the mark of S$5.84 per share on October 18th.
State investment firm Temasek Holdings is planning to buy Keppel corporation for S$4.1 billion. The move might consolidate the rig building sector, that suffers effects from low oil prices. Temasek made an offer to purchase Keppel's shares at a rate of S$7.35 per piece
State investment fund already owns 20.44 % of company's shares. If the deal is successful, Temasek will have a total control of 51%, effectively becoming a parent firm.

In his statement, Temasek International's president Tan Chong Lee said that "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 doesn't not plan to privatise or delist Keppel on Singapore stock exchange. However, in the event of acquiring the company there is a possibility of business restructure.  "There has long been talk of a potential restructuring of businesses under the Keppel Corp and Sembcorp Industries stable such as the merging of the offshore & marine yards," said Low Pei Han, analyst at Bank of Singapore.
In 2017, Keppel and Sembcorp Marine, Keppel's competitor in rig-building, were caught up in Brazil's "Car Wash" corruption probe. In late 2017, Keppel's rig-building unit was dealing with charges regarding paying bribes to secure contracts with Brazilian firms, including Sete Brazil. Company paid S$422 million to resolve the situation. Keppel and Sembcorp Marine reached settlement with Sete Brazil earlier this month.