Keppel Limited

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http://btd.sg/15Eudfn

"KEPPEL Corp on Friday put paid to rife market speculation by launching an offer to take its subsidiary Keppel Land private.

But while the acquisition target was Keppel Land, much of the market scrutiny fell on Keppel Corp as analysts and investors asked questions about the bid....

.....For Keppel Corp, however, analysts and investors seemed mostly unconvinced about the motivation behind the acquisition.

"Generally, investors are still not clear as to the exact reason on the privatisation because they already have a majority stake," said an analyst. "It's really up to Keppel Corp to show what else they can do to derive additional value."

Many saw the move as a defensive one to diversify the group's earnings at a time when the outlook for its offshore and marine division - which accounts for 55 per cent of its bottom line - is uncertain.......

......The decision to pump money into property, rather than into the offshore and marine sector where assets can now be picked up on the cheap, worried analysts, who wondered if it signalled a more bearish outlook for the sector than the company had let on.....

...Questions were also raised over what seemed to be a dilution of Keppel Corp's exposure to the rig-building business, the reason why many investors bought into the stock in the first place. Asked whether the investor base could now be diluted, Mr Loh said that Keppel Corp had been a conglomerate with a multi-business approach over the past few decades. "We have executed this strategy very well, we believe that this is one of the core tenets for Keppel . . . This transaction, if nothing else, (emphasises) that we believe in this approach that has served us so well."

http://btd.sg/15Eudfn
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(23-01-2015, 05:08 PM)CCUV Wrote:
(23-01-2015, 03:03 PM)kayhian Wrote:
(23-01-2015, 02:14 PM)CCUV Wrote: it is a funny time to do a privatization especially kc operating weak cash flow and burning another 3b of cash especially when you have problem in the rig business is in my view puzzling......no idea better sit back and watch

they are following SCGlobal footsteps .... listed developer got painful restrictions.

(23-01-2015, 04:54 PM)brattzz Wrote: looks like a consolidation of both Keppel co.s to tide through the tough times... Big Grin

Hey! europe ECB just started QE E$60B till Late 2016, surely there are free e$ flooding good singapore companies soon! Big Grin

May not be a good thing....making Singapore dollars strong will lower Singapore export and tourism

SGD will continue to weaken vs USD as long as the EURUSD keeps trending down, due to MAS' currencies portfolio and demand for USD.
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The privatization of KepLand, remains controversial among its shareholders...

(not vested, but monitoring)

Shareholders still puzzled by Keppel's buyout of property arm: Deutsche Bank

SINGAPORE (Jan 28): Shareholders of Keppel Land may have cheered the recent offer by its parent to take it private, but Keppel Corp investors still appear to be scratching their heads as to why the rig builder wants to have full control of a business that's facing increasing headwinds.

"Our recent discussions with investors suggest limited enthusiasm for Keppel's unconditional cash offer for KepLand," Deutsche Bank analyst Kevin Chong wrote in a note.

While Keppel Corp investors acknowledge that the deal will boost the group's earnings and further diversify its income streams, "there was a lack of agreement regarding the logic for acquiring the remaining 45% of KepLand", he said.

"Some countered that Keppel is already benefitting from these issues since they currently own 55% of KepLand. There were also disagreements that synergy exists between offshore and marine and property."

Keppel Corp may be better off using the money for offshore and marine acquisitions, which it may now "hesitate" to pursue since it has to fork out a substantial sum to buy out the developer, he said, citing feedback from investors.

At its results briefing last week, Keppel Corp sought to address this concern by saying that when a business, like its offshore and marine arm, is doing well and generating good return, investing more in it does not imply better returns as the business is cyclical, Chong noted.

"The group highlighted that value may in fact be destroyed by investing more."

On Keppel's aspiration to become like the world's top 20% of conglomerates, whose shares trade at a premium to their book values, some investors felt the group did not explain clearly how it would achieve such a target, said Chong.
http://www.theedgemarkets.com/sg/article...tsche-bank
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Isnt the main reason to be able to hold its many unsold and upcoming unsold units which will face charges if they are unsold after 2 years of TOP.

I thought this was one of the main reasons for privatization since Kep Land has offloaded most of its commercial properties. Maybe why Kep Corp is unable to say this is because of its majority shareholder unlike Popular Holdings or SC global.
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I tot QC penalty will still apply even if keppel land is privatized. Refer to post 169
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I see, thanks for pointing out
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O and G business will be badly affected due to low oil price , KL will provide good recurrent income for KC.
“risk comes from not knowing what you’re doing.”
I don’t look to jump over 7-foot bars: I look around for 1-foot bars that I can step over.
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Today (29Jan15) - the 4th market day after the company announced on 23Jan15 its rather controversial privatisation GO for listed subsidiary KepLand - KepCorp staged another surprise advance of $0.16, or 1.91%, to close at $8.54, backed by a high volume transacted of 10.3m shares. This is the 3rd day of advance in a row. Is Mr Market finally turning to be a believer that the privatisation GO exercise for KepLand is both value enhancing and earnings accretive for KepCorp in the medium to longer term?
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(29-01-2015, 09:14 PM)dydx Wrote: Today (29Jan15) - the 4th market day after the company announced on 23Jan15 its rather controversial privatisation GO for listed subsidiary KepLand - KepCorp staged another surprise advance of $0.16, or 1.91%, to close at $8.54, backed by a high volume transacted of 10.3m shares. This is the 3rd day of advance in a row. Is Mr Market finally turning to be a believer that the privatisation GO exercise for KepLand is both value enhancing and earnings accretive for KepCorp in the medium to longer term?

i just wonder who are the main buyers of KeppelCorp? definitely not the OPMI.
WB:-

1) Rule # 1, do not lose money.
2) Rule # 2, refer to # 1.
3) Not until you can manage your emotions, you can manage your money.

Truism of Investments.
A) Buying a security is buying RISK not Return
B) You can control RISK (to a certain level, hopefully only.) But definitely not the outcome of the Return.

NB:-
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Just someone doing national service...
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