State investor Temasek Holdings proposed a S$4.1 billion bid on Monday to take control of shipping-to-real estate conglomerate Keppl Corp. Temasek, which is Singapore's sovereign wealth fund, already owns 20.5 percent of Keppel Corp.
"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," said Tan Chong Lee, Temasek International president, according to Channel News Asia.
The statement also said Temasek will not delist or privatise Keppel, one of the biggest Singaporean conglomerates, if the deal is completed.
Earlier, Reuters had reported, citing sources familiar with the matter, that Temasek was making a multi-billion dollar offer for Keppel, eying a majority stake in the company.
Drop in Q3 net profit
Keppel Corp said on October 18 that its third-quarter net profit fell 30 percent to S$159 million. Higher interest expenses and the lack of gains from a commercial development divestment in Beijing were cited as the primary reasons for the fall.
The conglomerate said revenue jumped 60 percent to S$2.07 billion from S$1.30 billion. The rise was mainly due to higher income from offshore and marine infrastructure projects and higher sales in the power and gas business. Even as earnings per share (EPS) dropped to 8.8 Singapore cents, Keppel said there was no dividend for the three months to September.
Keppel had reported a fall in net profits in the second quarter as well. Net profit was down at $153.4 million for the three months to June 30, which was 38 percent down from $249.1 million posted in the corresponding quarter a year ago.
