Keppel to privatise Keppel T&T with S$1.91 per share cash offer

KEPPEL Corp said on Thursday that it plans to privatise Keppel Telecommunications & Transportation Ltd (Keppel T&T) with a S$1.91 per share cash offer.

The diversified marine group said this would give shareholders of Keppel T&T an opportunity to realise their investment at an attractive premium of about 40 per cent over the company's one-month volume weighted average price of S$1.365.

"The proposed scheme is consistent with Keppel Corporation's strategy to simplify the Keppel group's corporate structure, with a view to improving capital allocation and better aligning Keppel T&T's interests with the rest of the group,'' it said in a media release.

The scheme will require, among others the approval by more than 50 per cent of the number of independent Keppel T&T shareholders representing at least 75 per cent in value of the Keppel T&T shares held by Keppel T&T shareholders present and voting in person or by proxy at the scheme meeting.

The meeting is expected to be convened in the first quarter of 2019.

The scheme will also require the approval of the High Court of Singapore. Keppel Corp will be required to abstain from voting.