https://www.channelnewsasia.com/business...an-3028676
SCM is now buying KOM discontinued operations for a considerations of S$4.5million instead of s$4.87 million. While there is indeed a downward revision, the truth is it is still very expensive. Keppel has started reporting this discontinued business and it is only earning annually about $130-$150 million (NAV is negative). I dont think SCM is getting a good deal.
If Keppel thinks that its legacy offshore assets are worth s$4.5 billion, instead of going SCM, it should publish a tender to invite all interested parties. I feel it is unlikely anyone will bid s$4.5 billion for it, unless it is Temasek : p
A closer value should be in the region of s$3 billion as the segment Keppel is selling to SCM are the offshore oil rigs capabiltieis etc which are "non-green friendly" products which has diminishing demand due to climate change. SCM mgmt should just walk away from the deal and let Keppel do an open tender exercise to see how much it is worth.
SCM is now buying KOM discontinued operations for a considerations of S$4.5million instead of s$4.87 million. While there is indeed a downward revision, the truth is it is still very expensive. Keppel has started reporting this discontinued business and it is only earning annually about $130-$150 million (NAV is negative). I dont think SCM is getting a good deal.
If Keppel thinks that its legacy offshore assets are worth s$4.5 billion, instead of going SCM, it should publish a tender to invite all interested parties. I feel it is unlikely anyone will bid s$4.5 billion for it, unless it is Temasek : p
A closer value should be in the region of s$3 billion as the segment Keppel is selling to SCM are the offshore oil rigs capabiltieis etc which are "non-green friendly" products which has diminishing demand due to climate change. SCM mgmt should just walk away from the deal and let Keppel do an open tender exercise to see how much it is worth.