SPH to unlock value for shareholders via S$3.4 bln privatisation offer

By Massita Ahmad

SINGAPORE, Aug 2  -- Singapore Press Holdings Ltd (SPH) announced today that Keppel Pegasus Pte Ltd has proposed to acquire all the shares of SPH post restructuring of the media business through a scheme of arrangement worth S$3.4 billion (S$1=RM3.11)

Keppel Pegasus is a wholly owned unit of Keppel Corp Ltd.

Under the scheme, for each share in SPH, a shareholder will receive a total consideration of S$2.099 per share, comprising a cash of S$0.668 per share, 0.596 Keppel Corp REIT units valued at S$0.715 per share, and 0.782 SPH REIT units valued at S$0.716 per share from a distribution in-specie (DIS) by SPH.

This represents a 39.9 per cent premium to the last traded price of S$1.50 per share before the Strategic Review of SPH’s businesses was announced on March 30, 2021, as well as an 11.6 per cent premium to the last traded price of S$1.88 per share on July 30, 2021.

“The outcome is the result of a strategic review process that has taken place over many months. We took the first step with the Media Restructuring to ensure a sustainable future for the media business, while removing its losses from SPH,” SPH chief executive officer Ng Yat Chung said in a statement here.

Ng noted that the next step was a thorough process to unlock and maximise value for all shareholders for the remaining company.

“With the privatisation offer from Keppel, shareholders now have an opportunity to realise the value of their SPH shares at a premium of 39.9 per cent to the last traded price before the Strategic Review was announced,” he said

The scheme, among others, is subject to approval by SPH and Keppel Corp shareholders.

Upon the completion of the scheme, SPH will be delisted and be a wholly-owned unit of Keppel Corp.

-- BERNAMA