If the MAC pre-condition is to be assessed on 2Q2020 results, the MAC pre-condition would not be satisfied, a recent Keppel Corp announcement says.
On Aug 10, Temasek Holdings announced it has decided that it will invoke the material adverse change (MAC) pre-condition, and accordingly, the Partial Offer will not proceed. The Securities Industry Council of Singapore has confirmed that it has no objection to the Offeror withdrawing the Partial Offer by invoking the MAC pre-condition.
On July 30, Keppel Corp announced that its profit after tax (PAT) in 2Q2020 was a negative $698.8 million, and the cumulative PAT for the latest 12 month period is a negative $164.7 million. In October last year, Temasek Holdings announced a partial offer for Keppel Corp at $7.35 per share in order to raise its stake from 20% to 51%, under certain pre-conditions. At this price, Temasek would be paying $4.08 billion for its additional 30.55% stake, or 1.28x Keppel's1H2020 NAV of $5.70. Among the MAC pre-conditions is for PAT for a 12 month period to be no less than $556.9 million.
