Keppel Corp to sell entire 49.99% stake in GE Keppel for S$24.6m

Singapore

KEPPEL Corporation has agreed to sell its entire stake in GE Keppel Energy Services to GE Singapore of General Electric for S$24.6 million by February, it said in a filing on Friday afternoon.

Incorporated in Singapore, GE Keppel's main activity is the repair of electrical, mechanical and marine equipment and the repair of power generation equipment.

Keppel has a 49.99 per cent

interest in the issued share capital of GE Keppel.

"The divestment is in line with the company's strategy to regularly review its asset portfolio to identify capital recycling opportunities. The proceeds from the divestment will be used by the company to pursue new growth opportunities," said Keppel.

The purchase consideration was based on the unaudited book value and net tangible assets attributable to a Keppel subsidiary's 49.99 per cent interest in GE Keppel as at Dec 31, 2016.

The subsidiary is Keppel Infrastructure Services (KIS), which is wholly owned by Keppel Infrastructure Holdings, itself a wholly-owned subsidiary of Keppel Corp.

KIS houses the technical support and operations and maintenance capabilities within the Keppel Infrastructure group. It operates energy and environmental related infrastructure facilities globally.

The consideration will be paid to KIS on completion of the divestment and was negotiated on a willing buyer willing seller basis, said the release.

Keppel's counter fell by 12 Singapore cents to end Friday trading at S$6.27 before the announcement.