Keppel shares tumble as Temasek scraps $3 billion bid after conglomerate’s loss

Shares in Singapore’s Keppel Corp (KPLM.SI) fell 13% on Tuesday after Temasek Holdings abandoned its $3 billion offer for the conglomerate by invoking a material adverse change clause following the company’s poor financial results.

Keppel’s large second-quarter loss that breached a threshold in the state investor’s offer to buy majority control had boosted the risk Temasek would abandon the deal. [L4N2F301B]

“It was a surprise, as my base case was that Temasek would have proceeded, but with a lower offer price,” said KGI Securities analyst Joel Ng.

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