Monday 21 October 2019 2:20 pm

Temasek makes $3bn offer to take control of Singapore’s Keppel Corp

Sinagaporean sovereign wealth fund Temasek is offering to buy a majority stake in
oil rig-builder Keppel Corp in a deal worth around 4 billion Singaporean dollars (£2.3bn).

Temasek, which already owns 20.5 per cent of Keppel, said it would increase its stake to 51 per cent. As well as rig-building, the Singaporean conglomerate is also involved in property development and infrastructure projects.

Read more: Temasek mulls purchase of Atkins from SNC-Lavalin

A fully-owned subsidiary of the £177bn fund will make a cash offer of 7.35 Singaporean dollars per Keppel share, a premium of nearly 26 per cent on their last traded price.

Temasek said Keppel would remain listed on Singapore’s stock exchange if the deal was to be approved.

The rig-building sector has been hurt by tumbling oil prices in recent years. Temasek said that if the deal is completed, it would undertake a strategic review of Keppel’s business alongside the company’s board.

Keppel was among the firms caught up in Brazil’s “car wash” investigation into corruption. In 2017, the firm’s rig-building division paid $422m (£325m) to resolve charges it paid bribes to secure contracts in the country.

Read more: Seplat Petroleum expands production with £382m purchase of Eland Oil & Gas

It emerged yesterday that Temasek was considering a takeover of British engineering firm Atkins, which is currently owned by Canadian conglomerate SNC-Lavalin.

Main image credit: Getty