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Keppel T& T to divest entire stake in Keppel Logistics for $80 million
- Keppel Telecommunications and Transportation (Keppel T& T) will sell its entire stake in Keppel Logistics to Geodis International SAS for some $80 million, Keppel Corp announced on Thursday (March 31).
The proposed divestment is in line with the Keppel group' s 2030 plans to simplify and focus its business, and is expected to take place in the second quarter of this year, the company said in a bourse filing.
Following its completion of the sale - which, it noted, is still conditional upon the receipt of approval from the applicable regulatory authorities, among other things - Keppel Logistics will cease to be a subsidiary of the company, Keppel stated.
In a separate statement, Keppel T& T' s chief executive officer Thomas Pang said that Keppel Logistics is Keppel T& T' s " non-core business that has been operating at a sub-scale level" , and parting with it will " enhance" earnings.
Following the divestment, Keppel T& T' s priority would be to scale up in our focus areas of sustainable data-centre solutions and subsea cable systems, he added. The transaction will also unlock capital that can be deployed to fund Keppel Group' s growth initiatives, he said.
Under the deal, Geodis, a global logistics company, will pay about $70 million of the amount in cash. The remaining $10 million will be placed in an escrow account to be released to Keppel T& T upon the fulfillment of certain performance targets in 2022 and 2023, Keppel said.
The sum, which values Keppel Logistics at an enterprise value of $150 million on a cash-free, debt-free basis, was arrived at on a willing-buyer, willing-seller basis. It takes into account Keppel Logistics' financial position, business prospects and enterprise value of $150 million, as well as its net asset value attributable to the sale shares, which was approximately $72.6 million as at Dec 31, 2021, it added.
For the 2021 financial year, the Keppel Logistics entities that divested to Geodis registered a net loss after tax of $5.2 million. Keppel stated in the statement that Keppel T& T will continue to seek opportunities to monetise its remaining non-core logistics assets and operations after divesting Keppel Logistics.
Keppel, meanwhile, declared that none of the directors and controlling shareholders of the Company has any interest, direct or indirect, in the proposed divestment, other than through their shareholding interests, if any, in the company.
It also said that the proposed divestment is not expected to have any material impact on the net tangible assets or earnings per share of the company for the current financial year.
Keppel unit divests stake in Thailand-listed ARIP for 60.7m baht
KEPPEL Telecommunications & Transportation (Keppel T& T), through its wholly-owned subsidiary Apsilon Ventures, has divested its 20.05 per cent equity interest in ARIP Public Company Limited to Min Intanate for 60.7 million baht (S$2.6 million).
In a bourse filing on Friday evening, Keppel said the market value represented by the sale shares as at June 25 stood at 68.2 million baht.
ARIP is a Thailand-based company engaged in the event management related to electronics and information technology (IT), IT-related publications, and the placement of advertisements.
A search on ARIP' s website showed Mr Intanate listed as a director and executive chairman of the company.
The consideration was arrived at on a willing-buyer, willing-seller basis after taking into account the historical volume weighted average prices of ARIP, said Keppel.
Following completion of the divestment, ARIP will cease to be an associated company of Keppel.
The divestment is also in line with Keppel' s Vision 2030, which plans to monetise its non-core assets and seek new growth opportunities.
The divestment is not expected to have any material impact on Keppel' s net tangible assets per share or earnings per share for the current financial year.
Keppel unit divests stake in Thailand-listed ARIP for 60.7m baht
Keppel Telecommunications & Transportation (Keppel T& T), through its wholly-owned subsidiary Apsilon Ventures, has divested its 20.05 per cent equity interest in ARIP Public Company Limited to Min Intanate for 60.7 million baht (S$2.6 million).
In a bourse filing on Friday evening, Keppel said the market value represented by the sale shares as at June 25 stood at 68.2 million baht.
ARIP is a Thailand-based company engaged in the event management related to electronics and information technology (IT), IT-related publications, and the placement of advertisements.
A search on ARIP' s website showed Mr Intanate listed as a director and executive chairman of the company.
The consideration was arrived at on a willing-buyer, willing-seller basis after taking into account the historical volume weighted average prices of ARIP, said Keppel.
Following completion of the divestment, ARIP will cease to be an associated company of Keppel.
The divestment is also in line with Keppel' s Vision 2030, which plans to monetise its non-core assets and seek new growth opportunities.
The divestment is not expected to have any material impact on Keppel' s net tangible assets per share or earnings per share for the current financial year.
Shares in Keppel closed at S$5.40 on Friday, up 5.7 per cent or S$0.29.
Keppel T& T, Converge sign binding term sheet for capacity on subsea cable system
A WHOLLY-OWNED subsidiary of Keppel Telecommunications & Transportation (Keppel T& T) will grant Philippine-listed Converge Information & Communications Technology Solutions capacity on the Bifrost Cable System.
In an exchange filing on Wednesday, Keppel Corp said the subsidiary, Keppel Midgard Holdings, signed a binding term sheet with Converge to grant the fibre broadband provider an indefeasible right of use (IRU) for one fibre pair on the main trunk of the subsea cable system.
The Bifrost Cable System directly connects Singapore to the west coast of North America via Indonesia through the Java Sea and Celebes Sea.
Keppel Midgard and Converge will jointly develop a branch on the Bifrost Cable System that will land in Davao, the Philippines. Converge will be granted an IRU on the entire Davao branch and will be engaged as a landing party for the branch segment.
Converge will invest over US$100 million in the project, which is expected to " significantly increase" Internet speeds and network diversity for businesses and consumers in the Philippines, Keppel Corp said.
Converge chief executive Dennis Anthony Uy said the investment into one full fibre pair will allow the company to independently activate at will up to 15 terabits per second of capacity to either country using the latest technology.
" Furthermore, our ongoing construction of our National backbone spanning the whole country will allow Converge to distribute this capacity from Davao to any point in the Philippines," he added.
Keppel T& T chief executive Thomas Pang said, " Through this partnership, we will be able to accelerate the growth of our connectivity platform, which is in line with Keppel' s Vision 2030, as well as explore synergies with not only Keppel' s data centres, but also Converge' s data centre business."
Keppel Corp said the completion of the proposed transaction with Converge is subject to negotiation and execution of definitive agreements and relevant regulatory approvals.
The Bifrost Cable System - which Keppel T& T is undertaking with its partners, Facebook and Telin - is expected to span over 15,000 kilometres after its estimated completion in 2024. It is expected to be the largest capacity high-speed transmission cable across the Pacific Ocean when completed and will bolster Singapore' s role as a digital hub for the region, Keppel Corp said.
SIC also sleeping. Gotta wake up and make them clarify, justify their comment. Whatever opinion they give must stand up to scrutiny.
fundamentalhero ( Date: 18-Mar-2019 22:32) Posted:
this is nothing. go read courts vgo.
unfair but reasonable. LOL. yet it goes through |
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this is nothing. go read courts vgo.
unfair but reasonable. LOL. yet it goes through
Some of these IFAs give advice that is best described as wishy washy. How else can you describe an offer that is Fair and Reasonable, but not compelling ???? WTH is that supposef to mean ? fair and reasonable but not quite ??? Totally ambiguous !! SIC should exercise more oversight over these IFAs to raise the quality of these so called professionals. Time to clean up their act !!!
Not true.
Last time IFA recommendations got a fair bit of " unfair but reasonable" or " fair but unreasonable" , until SGX regco recently crack down and pass a regulation where the IFA cannot give such flip flop recommendation to investors. Must be a clear " yes" or " no" recommendation.
It' s always Fair and Reasonable...........
Keppel' s buyout offer for Keppel T& T ' fair and reasonable' , says IFA
MON, MAR 11, 2019 - 9:05 AM
UPDATED MON, MAR 11, 2019 - 12:25 PM
THE independent financial adviser for Keppel Telecommunications & Transportation (T& T) has found a buyout offer by parent company Keppel Corp to be " fair and reasonable" .
Rothschild & Co has recommended that Keppel T& T shareholders vote in favour of the proposed scheme at a scheme meeting that will take place at 3pm on April 2, 2019, or sell their shares in the open market if they can obtain a higher price than what is being offered. Keppel T& T&rsquo s independent directors have accepted Rothschild' s recommendation.
Keppel Corp is offering S$1.91 in cash for each Keppel T& T share it does not already own through the scheme. Keppel T& T shares closed at S$1.88 on March 8. If Keppel T& T shareholders reject the scheme, their company' s shares will continue to trade on the Singapore Exchange.
The &ldquo fair and reasonable&rdquo recommendation was given due to the &ldquo low trading liquidity&rdquo of Keppel T& T&rsquo s shares, which Rothschild said had &ldquo generally been low&rdquo in the past 12 months prior to Sept 27, 2018, the joint announcement date of the acquisition and scheme, and March 1, 2019, the latest practicable date prior to the launch of the scheme document.
&ldquo The scheme represents a clean cash exit opportunity for shareholders to realise their entire investment without incurring brokerage and other trading costs, an option which may not otherwise be readily available due to the low trading liquidity of the shares,&rdquo Rothschild added.
For the 12 months ended March 1, 2019, the average daily trading volume of Keppel T& T&rsquo s shares has been 0.3 million shares, and the average daily trading value has been about S$0.5 million. From Sept 27, 2018 to March 1, 2019, the average daily trading volume and trading value increased to 0.5 million shares and S$0.9 million respectively. Closing share prices meanwhile, traded between S$1.34 and S$1.89 in the three-year period up to March 1, 2019.
Rothschild said that the shares have also underperformed the Benchmark Index for the three-month, six-month, 12-month and 24-month periods up to the last trading day on Sept 21, 2018 and outperformed the Benchmark Index for the three-month, six-month, 12-month and 24-month periods up to the latest practicable date on March 1, 2019.
Keppel Corp has said that privatising Keppel T& T will allow more flexibility in allocating resources and capital in a &ldquo more efficient manner&rdquo without reporting requirements and compliance costs associated with the maintenance of its listed status. Keppel Corp is also looking to streamline its own corporate structure.
In addition, the move will allow Keppel Corp greater control and flexibility in granting Keppel T& T full access to its network and resources as it grows its data centre and urban logistics businesses.
Keppel Corp currently owns 79.09 per cent of the shares in Keppel T& T, which in turn owns 19.3 per cent of telco M1. Shareholders cautious of the prospects of M1 in the face of heightened competition will obtain a &ldquo clean cash exit&rdquo from Keppel T& T if the scheme becomes effective, the offeror has said.
Hence, shareholders who wish to realise their investment in cash may do so at a &ldquo premium to prevailing market prices&rdquo prior to the joint announcement date and without incurring brokerage fees.
Looking ahead, Keppel Corp said it intends to work with Keppel T& T&rsquo s management team to identify, develop and execute appropriate transformation strategies which, if successfully implemented, may enable Keppel T& T to better utilise its resources in achieving a different growth trajectory and profit performance.
Until a decision is made regarding this transformation, there is no intention to introduce any major changes to the business or operations of any group company, redeploy Keppel T& T&rsquo s fixed assets or attrition, other than in the ordinary course of business.
" However, Keppel retains the flexibility to consider, at any time, any options in relation to any group company which may present themselves and which it may regard to be in the interest of Keppel," the document added.
https://www.businesstimes.com.sg/companies-markets/keppels-buyout-offer-for-keppel-tt-fair-and-reasonable-says-ifa
Scheme of arrangement. Game over, next better counter.
SmallSmall ( Date: 27-Sep-2018 09:50) Posted:
| Keppel Corp to privatise Kep T& T @ $1.91 ! |
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Keppel Corp to privatise Kep T& T @ $1.91 !
Very bad news : https://www.theedgesingapore.com/keppel-tts-3q-earnings-down-82-128-mil-absence-one-gains
Good news.no move ?
Moves from bottom $1.50 to $1.56.
Sleep for very very long time, can up?
seems there' s good buying interest of M1 at 2.11
seanpent ( Date: 24-Apr-2017 21:16) Posted:
" Keppel T& T to benefit the most from M1 stake review"
https://www.msn.com/en-sg/news/other/keppel-tandt-to-benefit-the-most-from-m1-stake-review/ar-BBytWpN
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there are no lack of alternatives for source of investment income ......
MichaelSchenker ( Date: 24-Apr-2017 21:22) Posted:
At best, shareholders can expect a capital reduction if the sale goes through.
Another source of income gone if M1 is sold
So, very much depends how you look at it. Is it good to sell M1?
seanpent ( Date: 24-Apr-2017 21:16) Posted:
" Keppel T& T to benefit the most from M1 stake review"
https://www.msn.com/en-sg/news/other/keppel-tandt-to-benefit-the-most-from-m1-stake-review/ar-BBytWpN
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At best, shareholders can expect a capital reduction if the sale goes through.
Another source of income gone if M1 is sold
So, very much depends how you look at it. Is it good to sell M1?
seanpent ( Date: 24-Apr-2017 21:16) Posted:
" Keppel T& T to benefit the most from M1 stake review"
https://www.msn.com/en-sg/news/other/keppel-tandt-to-benefit-the-most-from-m1-stake-review/ar-BBytWpN
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" Keppel T& T to benefit the most from M1 stake review"
https://www.msn.com/en-sg/news/other/keppel-tandt-to-benefit-the-most-from-m1-stake-review/ar-BBytWpN
| Keppel T& T |
| Deeply undervalued |
KPTT SP / KTEL.SI | ADD - Maintained | S$1.49 /Tp S$1.93▲
Mkt.Cap:US$615.90m | Avg.Daily Vol:US$0.48m | Free Float:19.30%
Logistics | Author(s): Jessalynn CHEN +65 62108672, |
| |
| ▊ KPTT&rsquo s FY14 core net profit of S$72m exceeded our expectations, at 112% of our full-year forecast. This was mainly due to acquisition fees earned by KPTT through its wholly-owned subsidiary, Keppel DC REIT Management. Due to the one-off gain recognised from the sale of its data centre assets, a special DPS of 11.5 Scts was declared, bringing total DPS to 15 Scts (implying a 10% dividend yield). We trim our FY15-16 EPS by 2-3% to account for: 1) the divestment of its data centre assets to Keppel DC REIT, 2) management fees earned from the REIT, and 3) associates contributions from its 30.1% stake in the REIT. Our SOP target price inches up to S$1.93. KPTT remains an Add, with asset recycling and new logistics capacity additions as the key catalysts. |
Results highlights
Excluding the one-off divestment gain from the sale of its data centre (DC) assets, FY14 core operating profit grew 21% yoy and core net profit rose 14% yoy to S$72m. The yoy gain was boosted mainly by acquisition fees earned by Keppel DC REIT Management (KDCRM), a wholly-owned subsidiary of KPTT and the REIT manager for Keppel DC REIT. Based on a 1% acquisition fee, this translates into an additional S$10.3m in DC revenue. Excluding this amount, we estimate that net profit would have been in line with our estimate (S$64m).
Special DPS of 11.5 Scts declared
KPTT realised a one-off gain of S$175m from: 1) the divestment of its DC assets to Keppel DC REIT, and 2) return of capital from its stake in the Securus Data Property Fund. Of the total amount, it paid out 36% to shareholders, translating into a special DPS of 11.5 Scts. This brings total DPS for FY14 to 15 Scts, which implies a 10% dividend yield.
Undervalued at current price
KPTT is trading at 10x forward P/E, more than 1 s.d. below its historical mean. It is also trading at a 14% discount to the combined market value of its 20% stake in M1 and 30.1% stake in Keppel DC REIT &ndash implying that the market has ascribed almost no value to its logistics and data centre assets. We see value in the stock at these levels, which represent an attractive entry point, in our view. Going forward, we expect catalysts from two engines: 1) spin-off of DC assets into the REIT, and 2) new logistics warehouse additions. For the former, KPTT plans to inject Keppel Datahub 2 and Almere Data Centre 2 into the REIT in 2015-16 and 2016-17 respectively. For the latter, new warehouse capacity will come from the opening of Tampines Logistics Park, Tianjin Eco-city Distribution Centre and Keppel Wanjiang Logistics Park in 2015. |
listing businesses will lead it to have a conglomerate discount though
