Equity Analysis /
Singapore

SG : Offshore & Marine - Accretive for KEP, takes time for CE to grow

    Siewkhee Lim
    Siewkhee Lim

    Head of Singapore Research

    CGS-CIMB
    27 April 2022
    Published by

    We estimate KEP’s share price accretion post dividend-in-specie from the proposed merger of Keppel OM and SMM to range from S$0.48 to S$1.43. The above takes into account a range of dividend in specie in the new combined entity, Bayberry, of between S$1.28 and S$2.22/share. The deal, which is set to complete by end-22, favours KEP more than SMM, in our view. SMM’s restructuring into a mega yard for growth could take time.