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Offer to privatise Keppel Land "not fair but reasonable": KPMG
Independent financial adviser KPMG Corporate Finance described Keppel Corps offer to acquire Keppel Lands remaining shares for up to $3.2 billion as not fair but reasonable, reported the media.
KPMG, which is advising the independent directors of Keppel Land, noted Keppel Corps base and higher offer prices of $4.38 and $4.60 per share were significantly lower compared to Keppel Lands sum-of-the-parts (SOTP) estimated valuation range of $6.58 and $6.79 per share.
In determining that the offer is not fair, we have referenced the SOTP valuation which provides the intrinsic value of the shares, said KPMG in a report.
Nonetheless, the offer was reasonable considering the significant premium to the median share price.
As at the Latest Practicable Date, the offeror already owns and controls 54.6 percent of the total issued shares, excluding treasury shares, meaning that it already has statutory control and making it unlikely that there will be another bidder offering better terms in the near term, added KPMG.
Last month, Keppel Corp made an offer to take its property arm, Keppel Land, private at a base offer price of $4.38 per share. The price will be raised to $4.60 per share if Keppel Corp manages to take Keppel Land private.
In concurring with KPMGs assessment, Keppel Lands independent directors advised shareholders to accept the offer.
Muneerah Bee, Senior Journalist at PropertyGuru, edited this story. To contact her about this or other stories emailmuneerah@propertyguru.com.sg
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