Keppel Corporation - CGS-CIMB Research 2022-10-28: Strength On All Fronts (Except Urban)

• Keppel Corporation (SGX:BN4) and Sembcorp Marine (SGX:S51) are revising terms of the KOM-SMM merger in hopes of expediting the completion by Dec 22F or Jan 23F. Sembcorp Marine (SMM) will directly acquire 100% of Keppel Offshore & Marine (KOM) and retain its listing status on SGX, instead of forming a combined entity (Bayberry). See
  • - Read this at SGinvestors.io -
  • Sembcorp Marine's announcement dated 27 Oct 2022: SCM Announces Revised Transaction Structure and Improved Terms for Direct Acquisition of KOM.
• - Read this at SGinvestors.io -
• No court approval is required for the transaction; only majority shareholders approval is needed. The dividend-in-specie to Keppel Corp’s shareholders will be revised to 49% (instead of 46% previously). Accordingly, Keppel Corp’s share in Sembcorp Marine (retained for contingent liability purpose) will be reduced to 5% (previously 10%). Keppel Corp shareholders will receive 19.1 Sembcorp Marine shares (implied S$2.33 per Keppel Corp share).
• See Keppel Corp's earnings announcement dated 27 Oct 2022. All of Keppel Corp's segments turned in y-o-y revenue growth in 9M22, except for urban development.
  • Read more at SGinvestors.io.

Above is the excerpt from research report by CGS-CIMB.
Clients of CGS-CIMB may access the full report in PDF @ https://www.itradecimb.com.sg/.

Read also CGS-CIMB's most recent report:
2024-02-01 Keppel - Infrastructure Powering Recurring Income.

Previous report by CGS-CIMB:
2023-11-29 Keppel Corporation - Making Headway Into Europe.

Price targets by other brokers at Keppel Corp Target Prices.

Listing of research reports at Keppel Corp Analyst Reports.

Relevant links:
Keppel Corp Share Price History,
Keppel Corp Announcements,
Keppel Corp Dividend Payout Dates & Corporate Actions,
Keppel Corp News