Temasek unit scraps RM12b bid for Keppel

SINGAPORE • Kyanite Investment Holdings Pte Ltd, a unit of Singapore state-backed investor Temasek Holdings Pte Ltd, scrapped its bid to take control of Keppel Corp after the oil-rig builder posted a second-quarter (2Q) loss.

Kyanite invoked a clause allowing it to withdraw the offer after the quarterly loss failed to meet pre-conditions of the bid, it said in a statement yesterday. Kyanite in October offered S$4 billion (RM12.21 billion) for an additional 30.6% stake in Keppel.

Temasek already owns one-fifth of the conglomerate, whose businesses include offshore and marine infrastructure, and property development.

There were warning signs that the deal may not go through when Keppel reported a net loss of S$697.6 million for the 2Q. That was Keppel’s first quarterly loss in more than two years as Singapore’s partial lockdown slowed production at its yards, with impairment losses at an associated company further denting its bottom line. Keppel shares have tumbled 20% this year.

Under the bid conditions, Keppel needed to have a net asset value above S$10.3 billion and cumulative net income after tax, but before non-controlling interests of more than S$556.9 million.

However, Keppel’s quarterly loss meant it didn’t satisfy a pre-condition related to after-tax net income. — Bloomberg