Keppel Corporation is divesting its 24.01% equity interest in Thai-listed Business Online Public Company (BOL) for a cash consideration of approximately THB827.6 million ($36 million).
The interest is owned by Keppel Telecommunications & Transportation, through Keppel Corporation’s wholly-owned subsidiary Keppel Communications.
Keppel’s stake will be divested through a sale of 20% equity interest to CTOS Holdings and 4.01% equity to businessman Min Intanate.
The consideration was arrived at on a willing buyer willing seller basis taking into account the historical volume weighted average prices of BOL.
According to Keppel, the divestment is “in line” with its Vision 2030, as well as its plans to monetise non-core assets and seek new growth opportunities.
See: Keppel Corporation reaffirms Vision 2030, announces strategic review of its offshore & marine business and Keppel O&M secures $600 mil contract in the offshore renewable energy industry
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The market value represented by the shares sold as at Oct 9 came up to about THB1.2 billion.
The divestment is expected to take place in 4Q2020, following which, BOL will no longer be an associated company of Keppel Corporation.
Keppel says that the divestment is not expected to have any material impact on its net tangible assets per share or earnings per share for the current FY.
Shares in Keppel Corp closed 6 cents higher, or 1.3% up, at $4.55 on Oct 12.
