Keppel Corp

Re: Keppel Corp

Postby winston » Wed Aug 05, 2020 2:01 pm

Likely lower offer from Temasek

Cleaning up the balance sheet.

KEP reported a massive S$698mn loss in 2Q20, mainly due to S$919mn of impairments of its O&M assets.

2Q20 net profits excluding the impairments was commendable, surging +45% YoY to
S$222mn.

Will Temasek bite? We believe Temasek will continue ahead with the partial offer for KEP, but with a lower revised offer price in light of the recent turn of events.

Maintain OUTPERFORM with the lower target price of S$6.34, based on SOTP valuation.

Source: KGI
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 108836
Joined: Wed May 07, 2008 9:28 am

Re: Keppel Corp

Postby winston » Wed Aug 05, 2020 2:07 pm

vested

Is there a need to kitchen-sink?

KEP took in c.S$889m of O&M impairment in 2Q20, resulting in loss of S$699m. This caused a breach of the MAC clause for Temasek’s partial offer.

Temasek can:-
1) issue a waiver to keep the offer
2) walk away from the deal due to the breach or
3) seek approval from SIC and review the offer price.

Our SOP TP is cut to S$6.46, to reflect lower O&M book value.

Catalyst: Temasek partial offer remains.

Risk: unexpected order cancellations.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... 2FB6AEB161
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 108836
Joined: Wed May 07, 2008 9:28 am

Re: Keppel Corp

Postby winston » Thu Aug 06, 2020 12:15 pm

vested

Will Singapore take over Keppel and merge it with Sembcorp Marine?

Shareholders in Singapore's pride, the hard-strained Keppel Fels shipyard, will have to wait to find out whether the island state's investment company Temasek will become majority shareholder.

Perhaps they are waiting for Sembcorp's decision to spin off its marine division. This will happen next week.

Source: Shipping Watch

https://shippingwatch.com/suppliers/article12323326.ece
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 108836
Joined: Wed May 07, 2008 9:28 am

Re: Keppel Corp

Postby winston » Mon Aug 10, 2020 4:31 pm

vested

Temasek will not proceed with partial offer for Keppel Corp

On Aug 10, Temasek Holdings announced it has decided that it will invoke the material adverse change (MAC) pre-condition, and accordingly, the Partial Offer will not proceed.

The Securities Industry Council of Singapore has confirmed that it has no objection to the Offeror withdrawing the Partial Offer by invoking the MAC pre-condition.

On July 30, Keppel Corp announced that its profit after tax (PAT) in 2Q2020 was a negative $698.8 million, and the cumulative PAT for the latest 12 month period is a negative $164.7 million.

In October last year, Temasek Holdings announced a partial offer for Keppel Corp at $7.35 per share in order to raise its stake from 20% to 51%, under certain pre-conditions.

Among the MAC pre-conditions is for PAT for a 12 month period to be no less than $556.9 million.

If the MAC pre-condition is to be assessed on 2Q2020 results, the MAC pre-condition would not be satisfied, a recent Keppel Corp announcement says.

On Aug 1, Keppel Corp announced that Temasek Holdings would disclose as soon as it makes a decision, and no later than Aug 31, if the latter intends to invoke the material adverse change (MAC) clause in its partial pre-conditional offer for Keppel Corp.

Separately, Sembcorp Marine (SMM) and Sembcorp Industries (SCI) EGM will be held 10am / 11.30am on Aug 11.

*We don't think the Keppel deal falling through will affect the Sembcorp proposals. SMM needs the lifeline right issue and SCI demerging SMM allows both companies to stay focused on their respective businesses," says a DBS Research note.

Keppel Corp closed at $5.40 on Aug 7.

Source: The Edge

https://www.theedgesingapore.com/news/m ... eppel-corp
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 108836
Joined: Wed May 07, 2008 9:28 am

Re: Keppel Corp

Postby winston » Tue Aug 11, 2020 8:32 am

vested

No deal for Keppel: Mixed views on what this means for O&M consolidation

Timing of Temasek's withdrawal from S$4 billion partial offer, well ahead of Aug 31 deadline, also surprises many market watchers

by SHARANYA PILLAI

Before Temasek's withdrawal, some market watchers were still cautiously optimistic that Keppel would keep the deal on the table, albeit at a lower price than the earlier announced S$7.35 per share for an additional 30.55 per cent stake.

Despite Temasek's withdrawal, the rough consensus still seems to be that Keppel O&M and SMM will eventually merge as industry headwinds worsen. But the question of when this marriage will happen has become more uncertain.


Source: Business Times

https://www.businesstimes.com.sg/compan ... solidation
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 108836
Joined: Wed May 07, 2008 9:28 am

Re: Keppel Corp

Postby winston » Tue Aug 11, 2020 11:50 am

Keppel Corp (KEP SP)
Disappointingly, Temasek Withdraws Partial Offer – But Not All Is Lost


Temasek announced that, pursuant to KEP’s poor 2Q20 results that were affected by nearly S$1b in impairments, it will invoke the MAC pre-condition and thus withdraw its partial offer for KEP.

We had expected a decision after, not before the SCI-SMM EGM on 11 August.

We point out that nothing stands in the way of Temasek coming back to the table with a revised offer in the next 6-12 months.

Maintain BUY. Target price lowered to S$6.70.

Source: UOBKH

https://research.uobkayhian.com/content ... 88a09a20ee
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 108836
Joined: Wed May 07, 2008 9:28 am

Re: Keppel Corp

Postby winston » Tue Aug 11, 2020 1:58 pm

vested

Keppel Corporation (KEP SP) - Temasek walks away… for now?

Keppel Corporation’s multi-business strategy shone when the property business continued to support earnings despite a downturn in the offshore marine segment.

Infrastructure remains a steady contributor while Investments is expected to see gains from asset disposals.

The pre-conditional partial offer by Temasek’s subsidiary will not proceed, such that the share price will lose its crucial support, and traders are likely to eye troughs in March 2020 or early 2016; any shorting activity could cause prices to overshoot on the downside.

We see value in the stock, though near-term catalysts may be lacking especially after this latest development. BUY.

Source: OCBCCCcc
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 108836
Joined: Wed May 07, 2008 9:28 am

Re: Keppel Corp

Postby winston » Wed Aug 12, 2020 5:14 pm

not vested

What’s New

Share price pressure to persist as Temasek invoked MAC pre-conditions and pulled the partial offer

Potential restructuring of Keppel Corp remains evolving and fluid at this juncture

Await catalysts and evidence on business turnaround and ROE enhancement

Downgrade to HOLD; TP reduced to S$5.50

Source: DBS

https://researchwise.dbsvresearch.com/R ... =fgdaakhea
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 108836
Joined: Wed May 07, 2008 9:28 am

Re: Keppel Corp

Postby winston » Mon Aug 31, 2020 9:50 am

vested

Keppel Corporation, which owns a 40 per cent stake in upstream oil and gas company KrisEnergy, on Sunday said it is prepared to support the final restructuring proposal of the debt-hit firm.

In a bourse filing, Keppel Corp said it has evaluated KrisEnergy's debt workout plan, which it believes is a "deliverable plan".

Source: Phillips
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 108836
Joined: Wed May 07, 2008 9:28 am

Re: Keppel Corp

Postby helios » Sat Sep 19, 2020 8:14 am

Regretfully I should have sold it off during SG Election week on hindsight .... Will need to average down at the right price before Q4 I think ...
helios
Permanent Loafer
 
Posts: 3627
Joined: Wed May 07, 2008 8:30 am

PreviousNext

Return to H to K

Who is online

Users browsing this forum: No registered users and 3 guests

cron