Keppel Corp: 50% owned assoc co Aqua Pellentesque (Aqua) has entered into an amalgamation agr with another 32% owned associate Floatel Intl to form a Bermuda exempted co. Shares of both co will be converted into shares of the new co in 50/50 equal proportion.
A consortium of Floatel sh/h including Keppel Corp, Barclays and JPM have indicated a positive vote for this proposal. Other Floatel sh/h outside the consortium whose shares are not converted will receive NOK19.5 (US$3.59) in cash consideration and have their shares cancelled. Each Floatel share has book value of US$2.35 and last traded share price was NOK18.1 (US$3.33). The amalgamation will require the approval of Floatel shareholders and the intention is to take Floatel private.
The Oslo listed Floatel builds accommodation semi-subs and delivered two such units. Floatel Reliance in Oct 10 and Floatel Superior in Apr 10. Keppel Corp secured an order in Jun 11 to build a third such unit for Floatel due for delivery in 2014.