The Deal Excludes SPH’s Media Arm and Could Lead to a Privatization
Singapore-based conglomerate Keppel Corp has proposed to acquire Singapore Press Holdings (SPH) in a deal worth S$3.4 billion, excluding SPH’s media division. The offer involves the purchase of SPH’s real estate assets and is set to include S$1.2 billion worth of SPH Reit units, which will be distributed to SPH’s shareholders. Keppel’s total share of the deal amounts to S$2.2 billion.
Under the terms of the deal, SPH will be delisted from the Singapore Stock Exchange if approved by shareholders. The deal is also contingent on the successful restructuring of SPH’s media business, which will be restructured into a not-for-profit entity.
For shareholders, the deal offers a total consideration of S$2.099 per share, comprising of cash and SPH Reit and Keppel REIT units. This represents an 11.6% premium to SPH’s closing stock price on July 30.
Keppel’s bid aligns with its strategy to expand into the student and senior accommodations industry, marking a significant move into the real estate sector. The deal also aims to provide shareholders with an opportunity to participate in the recovery of the retail and commercial sectors.
