Temasek's offer for Keppel may stay but at a lower price: analysts

Analysts cutting their target prices even though they're keeping their 'buy' calls

Published Mon, Aug 3, 2020 · 09:50 PM

Singapore

SOME analysts are keeping faith with Temasek Holdings going through with its partial offer for Keppel Corporation given the need for consolidation in the sector.

But the offer price may be lowered, leading them to cut their target prices even though they're keeping their "buy" calls.

The conglomerate last Thursday posted a record quarterly net loss of S$697.6 million for the second quarter ended June 30, breaching certain conditions for Temasek's offer. Over the weekend, Temasek said it'll make a decision by month-end whether the offer is a "go".

Shares of Keppel Corp tumbled on Monday, closing S$0.22 or 4.1 per cent lower at S$5.18.

Over the weekend, Morgan Stanley Asia (Singapore) said on behalf of Temasek's wholly-owned subsidiary Kyanite Investment that the latter will decide by end-August whether to invoke the material adverse…