Singapore Press Holdings - CGS-CIMB Research 2022-02-10: Expediting The Privatisation

Singapore Press Holdings - Expediting The Privatisation

  • SPH (SGX:T39) yesterday announced that it had given Keppel Pegasus notice of the termination of the Keppel Implementation Agreement (KIA) with immediate effect. Keppel Corp (SGX:BN4) launches an arbitration against SPH for its purported termination of the agreement.
  • We have already expected its deal to take SPH private to be off since the intervention by Cuscaden in Nov 2021. We believe the earnings impact from the arbitration could be immaterial for Keppel Corp. The termination of the Keppel Scheme paves the way for a clearer and more straight-forward privatisation and voting process for shareholders to vote on the more superior Cuscaden offer.
  • Our last target price for SPH included a 20% discount to RNAV (S$2.64) vs Cuscaden’s offer of S$2.36-2.40.
  • We think outcome of the arbitration may not matter as companies would have moved on, pursuing goals of higher price of privatisation (SPH) and vision 2030 plans (Keppel Corp).

Above is the excerpt from research report by CGS-CIMB.
Clients of CGS-CIMB may access the full report in PDF @

LIM Siew Khee CGS-CIMB Research | EING Kar Mei CFA CGS-CIMB Research | 2022-02-10

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