Keppel to privatise Keppel T&T shares at $1.91 apiece

Shareholders may opt for a clear cash exit if they worry about the M1 buyout offer.

Keppel revealed its move to privatise Keppel Telecommunications & Transportations (Keppel T&T) at $1.91 per share, exceeding the highest closing price of the stock since September 2008.

“The proposed scheme is consistent with Keppel Corporation's strategy to simplify the Keppel group's corporate structure, with a view to improving capital allocation and better aligning Keppel T&T's interests with the rest of the Keppel group,” the firm said in a statement.

According to the firm, the move is designed to delist and privatise the telco arm subject to the approval of the minority shareholders of Keppel T&T in a meeting which will be convened.

Also read: SPH to join Keppel for M1 buyout offer

“As Keppel T&T will remain a shareholder of M1, the scheme gives Keppel T&T's minority shareholders an opportunity to realise their investment in Keppel T&T for cash at a compelling premium to the current share price,” they explained.

Keppel advised minority shareholders of Keppel T&T that are worried of the M1 buyout amidst heating competition to obtain a clean cash exit from Keppel T&T instead if the deal gets its approval.