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Business deals

Temasek’s $3bn Keppel deal spurs talk of industry consolidation

Singapore’s state investment company plans to buy 51% in local oil rig maker

Keppel’s main businesses range from offshore rig-building to property and infrastructure development.   © Reuters

SINGAPORE -- Singapore's state investment company Temasek Holdings is planning to acquire 51% of local conglomerate Keppel Corp., the companies said Monday, in a move that analysts said was to restructure the major offshore rig builder which has been facing a difficult operating environment.

Temasek currently owns 20.45% of Keppel. It now plans to buy an additional 30.55% stake from existing shareholders for 7.35 Singapore dollars per share, a premium of 26% over the last traded price. This translates into a total investment of about SG$4 billion ($3 billion).

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