Keppel adding more bricks to rigs

HISTORY doesn't repeat itself, but it often ryhmes, as the saying goes.

The year was 1983, and government-backed Keppel Shipyard, in the midst of a shipping slump, made one of the biggest takeover attempts in Singapore corporate history: a S$500 million bid for a big chunk of property and shipping group Straits Steamship, now known as Keppel Land. The takeover was billed as Keppel Shipyard's biggest diversification move. It was meant to provide long-term growth and a more stable income. The shipyard would call itself Keppel Corp a few years later.

However, the debt burden Keppel shouldered from the acquisition proved too much to bear, especially when both shiprepair and property businesses went into a funk. The purchase price was criticised for being too high. Keppel's turnaround took a few years, and included rights and debt issues, asset writedowns and layoffs. Heads rolled.