Keppel Land

Keppel Land: Parent Keppel Corp has extended the closing date of its voluntary unconditional cash offer to 26 March ’15.

As of yesterday, Keppel Corp has garnered 85.1% control of the total issued shares of its property arm, 4.9% below the 90% delisting level, and 10.4% from the 95.5% mark that will trigger compulsory acquisition and the higher offer price of $4.60.

The majority of the street has been confused by the compulsory acquisition threshold level, which is defined as 90% of the 45.4% shareholdings not owned by Keppel Corp at the despatch date of offer document (12 Feb). Adding this to the 54.6% owned by Keppel Corp then works out to 95.5% of the total issued shares.

Shareholders should note that at the current level of shareholding, the offer price will be based on the base offer price of $4.38, while the higher offer price of $4.60 will only be triggered only if the compulsory acquisition threshold (95.5% level) is reached.

Shareholders who want certainty may consider selling their shares in the open market at the current price of $4.56 to hedge their risks in the event Keppel Corp fails to clear the 95.5% higher price hurdle.