Keppel shares plummet over 12% at open after Temasek drops $4 billion bid

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Keppel shares plummet over 12% at open after Temasek drops $4 billion bid
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SINGAPORE - Shares of Keppel Corp plunged more than 12 per cent at the opening bell on Tuesday morning (Aug 11) after Singapore investment company Temasek walked away from its $4.1 billion conditional offer to buy control of Keppel Corp.. Read more at straitstimes.com.

SINGAPORE - Shares of Keppel Corp plunged more than 12 per cent at the opening bell on Tuesday morning after Singapore investment company Temasek walked away from its $4.1 billion conditional offer to buy control of Keppel Corp.

Kyanite Investment Holdings, a unit of Temasek, invoked a material adverse change clause in pulling out of the deal, according to a bourse filing on Monday. However, the clause was breached with Keppel's latest results. Its cumulative loss after tax for the year to end-June stood at $165 million, hit by $919 million in provisions for Keppel Offshore & Marine's contract assets, doubtful debt, as well as share of impairment provision arising from its associate, Floatel.

"We continue to believe in the inherent value of Keppel's business, and have a strong balance sheet and support from our network of banks to finance the group's operations and growth initiatives," it added.

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