Keppel Corp’s Bold Move to Grab SPH in a $3.4 Billion Deal
Short‑sighted? Not at all. Keppel Corp is set to pull the plug on Singapore Press Holdings (SPH) and make it a fully owned subsidiary, all through a saucy privatisation offer that puts SPH at a whopping $3.4 billion. The offer was announced Monday (Aug 2) and will see SPH delist from the market.
What the Deal Looks Like
- Keppel’s share of the pie: $2.2 billion
- For every SPH share you own, you’ll walk away with:
- Cash: 66.8 cents per share
- Keppel Reit units: 0.596 per share
- SPH Reit units: 0.782 per share
- Meanwhile, Keppel will keep a 20% hold in both SPH Reit and Keppel Reit after the takeover.
The Pre‑Work: Full‑Blown Media Restructuring
Before the takeover can happen, SPH has been in the process of saying goodbye to its media arm. The plan is to transfer the news business to a non‑profit entity “limited by guarantee,” a move that’s all about keeping the legacy alive while shedding financial losses. The reorganisation must be approved by SPH shares at an extraordinary general meeting (EGM) that’s slated for later this month or next.
If the EGM nods, the media restructure should wrap up by the end of the year, and the privatisation can hit the ground running right after.
Board’s Rationale: Why “All‑In” Was the Smartest Play
SPH’s board rode the thematic roller‑coaster of options—stay the course, monetize, partial sale, or full privatisation. They settled that “privatisation of the entire company” is the best route to maximize value while keeping shareholder disruption to an absolute minimum.
“It delivers a better valuation for all shareholders when a control premium is paid for the entire company. Plus, it prevents a scenario where the prime SPH assets get cherry‑picked, leaving behind debt and cold‑feet risks,” the board explained.
How the Winner Was Chosen
SPH evaluated each final bid on multiple fronts: price, terms, financing certainty, regulatory green lights, transaction structure, and execution risk. The Keppel offer topped the chart based on those criteria.
Inside the SPH Business
SPH is no mean news ticker—its flagship titles like The Straits Times and Lianhe Zaobao cover Singapore’s four official languages. Plus, SPH Reit owns popular shopping centres like Paragon and The Clementi Mall.
The Numbers That Make You Sit Up
- Keynote SPH CEO Ng Yat Chung explained that the privatisation offer is the culmination of a long strategic review, starting with the media lock‑in.
- Shares could be sold at a 39.9% premium to the last traded price before the review was announced.
- At $2.099 per share, that’s an 11.6% bump from SPH’s July 30 close of $1.88.
Who’s Cheering Us On?
Credit Suisse (Singapore) and Allen & Gledhill LLP play the advisory roles for SPH during this strategic review and the proposed transaction.
Feel the buzz? A major corporate shake‑up, a media renaissance, and a hefty premium all rolled into one. Keep your eye on the market—this could be the riddle that changes Singapore’s media landscape forever.
