Equity Analysis /
Singapore

SG : Keppel Corporation - Merger postponed, logistics monetised

    Siewkhee Lim
    Siewkhee Lim

    Head of Singapore Research

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    CGS-CIMB
    31 March 2022
    Published byCGS-CIMB

    The finalisation of the definitive agreement to merge Keppel OM and SMM will be postponed to 30 Apr 2022 (from 31 Mar 2022). KEP also successfully divested Keppel Logistics for a cash consideration of c.S$80m. A small loss is expected from the deal. Reiterate Add and a TP of S$7.20 on SOP valuations. Catalysts: expansion into renewables, S$2bn-3bn of asset monetisation p.a., and accretive MAs.