KepLand privatisation bid almost in the bag for Keppel Corp

It now holds 87.5% of KepLand.

Keppel Corp’s $3.2b privatisation bid for KepLand is almost, but not quite, in the bag.

With a little over three days left before the second closing date on March 26, Keppel Corp reported last Friday evening that it has acquired 87.5% of Keppel Land, 2.5% short of the 90% mandatory delisting threshold.

OCBC believes that this is quite achievable for KepCorp, with time on its side as the company has the option to further extend the closing date.

“After the 90% level is achieved, we believe residual minority shareholders who are holding out may be more inclined to subsequently accept, given the disincentive of holding illiquid delisted shares, and 2at that juncture, a higher likelihood of a compulsory acquisition and a S$4.60 price,” stated OCBC.