Advanced Theory & Practice of Bonds

Recognized under IBF-FTS | 7-8 June 2022 | 12 CPD Hours

Comprehensive 2-day course on bonds designed for private bankers, wealth managers and advisors.

Keppel Corporation announced that it has entered into definitive agreements with Sembcorp Marine for the proposed merger of Keppel Offshore & Marine (O&M) and Sembcorp Marine. The proposed merger is based on a 50-50 enterprise value ratio between Keppel O&M and Sembcorp Marine. As per the merger, Keppel will hold a 56% equity stake in the combined entity which will be separately listed, and cash of S$500mn ($362mn) while Sembcorp Marine shareholders will own 44%. The transaction will allow Keppel to realize ~S$9.42bn ($6.84bn) in value. This comprises of Keppel O&M valued at S$4.87bn ($3.53bn), extraction of S$500mn ($362mn) in cash as part of Keppel O&M’s pre-combination restructuring and S$4.05bn ($2.9bn) which includes vendor notes, perps and a 10% stake in Asset Co from the sale of Keppel O&M’s legacy rigs and associated receivables to Asset Co. 46% of equity shares in the combined entity will be distributed to Keppel’s shareholders and Keppel will deposit the remaining 10% into a segregated account for certain contingent liabilities. Post-transaction, Temasek will become the largest shareholder of the combined entity with a 33.5% stake. The deal will be subject to regulatory and shareholder approvals and expected to be completed by end of 2022. On a pro forma basis had the proposed transactions been completed on January 1 2021, the EPS for FY 2021 would have increased from S$0.56 to S$0.725, excluding the net disposal gain.

Keppel Corp’s SGD bonds were trading slightly higher, its 2.25% 2025s was up 0.02 points to 97.61 yielding 3.10%.

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