Keppel Corporation - CGS-CIMB Research 2022-03-31: Merger Postponed, Logistics Monetised

Keppel Corporation - Merger Postponed, Logistics Monetised

  • The finalisation of the definitive agreement to merge Keppel O&M and Sembcorp Marine (SGX:S51) will be postponed to 30 Apr 2022 (from 31 Mar 2022). Keppel Corp (SGX:BN4) also updated that significant progress has been made on advancing the sale of Keppel O&M’s legacy rigs and associated receivables to a separate company (Asset Co) that would be majority owned by external investors.
  • Separately, in line with its asset monetisation strategy, Keppel Telecommunications & Transportation (KEP T&T) is divesting its entire shareholding interest in Keppel Logistics (KLOG) to Geodis International SAS (GEODIS) for an aggregate cash consideration of ~$80m. Keppel Corp will recognise a small loss for this transaction.
  • Keppel Corp has also proposed to increase its share buyback limit to 5% (from 2%) in its AGM.
  • Reiterate ADD call on Keppel Corp and a target price of S$7.20 on SOP valuations.

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 | 2022-03-31
SGX Stock Analyst Report ADD MAINTAIN ADD 7.200 SAME 7.200

Read also CGS-CIMB's most recent report:
2022-07-29 Keppel Corporation - Great Change Ahead

Target prices by 3 other brokers at Keppel Corp Target Prices.
Listing of broker reports at Keppel Corp Analyst Report.

Relevant links:
Keppel Corp Share Price History,
Keppel Corp Announcements,
Keppel Corp Dividends & Corp Actions,
Keppel Corp News Articles


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