Keppel shareholders vote in favour of SPH acquisition

SHAREHOLDERS of Keppel Corporation BN4 have voted in favour of the proposal to acquire Singapore Press Holdings (SPH) T39. : T39 0% Its final offer for SPH is S$2.351 per share, consisting of S$0.868 per share in cash, 0.596 of a Keppel Reit unit and 0.782 of an SPH Reit unit.

In an extraordinary general meeting (EGM) held on Dec 9, some 98.2 per cent of shareholder votes signalled their approval for the acquisition of SPH, while 1.8 per cent voted against it.

Keppel Corp sees the latest results as a show of "strong support" from its shareholders regarding the acquisition, which it called a "win-win proposition" for both Keppel and SPH shareholders.

In its EGM presentation slides, the company reiterated that its latest and final offer of S$2.351 per share was "compelling" as the final consideration includes attractive premiums and an additional upside.

The company's proposed acquisition of SPH is a "rare opportunity to acquire synergistic platform aligned to Vision 2030", according to Keppel Corp, adding that it is earnings accretive on a pro forma basis.

Keppel Corp is going up against Cuscaden Peak, the consortium comprising Hotel Properties (HPL), businessman Ong Beng Seng, and two Temasek-linked entities, CLA and Mapletree, in the battle for SPH.

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Cuscaden Peak is offering each SPH shareholder the choice between an all-cash offer of S$2.36, or S$2.40 per share comprising S$1.602 cash and 0.782 of an SPH Reit unit through a distribution-in-specie by SPH.

The SPH board has acknowledged Cuscaden's offer as superior, although the company's shareholders have yet to vote at the relevant scheme meeting to be announced.

Shares of SPH closed on Thursday up by S$0.02 or 0.86 per cent at S$2.34, while units of SPH Reit SK6U closed up down by S$0.01 or 1.01 per cent at S$0.98. Meanwhile, shares of Keppel closed up by S$0.02 or 0.39 per cent at S$5.22, while units of Keppel Reit K71U : K71U 0%closed flat at S$1.15.

READ MORE:

• BT Explains: The fine print on the SPH privatisation deal

• Keppel says offer for SPH firm and irrevocable, provides shortest time to pay-out

• Sias questions Cuscaden and Keppel on SPH bid following investors' feedback