Keppel's Unit Sells Entire Stake in Berich Enterprises to KazStroyService
Singapore-based Keppel Corporation Limited (the Company or KCL) announced Friday that its wholly-owned subsidiary, FELS Offshore Pte Ltd (FELS Offshore), has today entered into a sale and purchase agreement with KazStroyService Global Engineering B.V. (the Purchaser) for the sale of 2 shares (Sale Shares), representing 100 percent of the issued and paid up capital of Berich Enterprises Limited (Berich), an indirect wholly-owned subsidiary of the Company, at a consideration of $16,250,000 per share (the Sale). The completion of the Sale is subject to, among other things, the approval of the applicable authorities in Kazakhstan for the transaction.
Berich is an investment holding company that holds 50 percent of the issued and paid up capital of Keppel Kazakhstan LLP, an associated company of the Company. An affiliate of the Purchaser is currently the holder of the other 50 percent of the issued and paid up capital of Keppel Kazakhstan LLP (Keppel Kazakhstan).
The principal activities of Keppel Kazakhstan are the design, engineering and construction of barges, pontoons, pipe racks, modules, and drilling units for the oil and gas industry in the Republic of Kazakhstan.
The aggregate cash consideration of $32,500,000 for the Sale Shares was arrived at on a willing buyer willing seller basis, taking into account the book value and net tangible assets of the Sale Shares as at Sept. 20, being $24,801,000.
Upon the completion of the Sale, Berich and Keppel Kazakhstan will respectively no longer be a subsidiary and an associated company of the Company.
None of the directors or controlling shareholders of the Company has any interest, direct or indirect, in the above transaction.
The abovementioned transaction is not expected to have any material impact on the earnings per share and net tangible asset per share of KCL for the current financial year.
A copy of the sale and purchase agreement will be made available for inspection during normal business hours at the registered office of the Company for a period of 3 months from the date of this announcement.
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