SINGAPORE – Keppel’s wholly-owned subsidiary Keppel Pegasus was awarded $34 million plus interest for its arbitration proceedings against Cuscaden Peak Investments, then known as Singapore Press Holdings (SPH).
The interest rate will be 5.33 per cent per annum from April 29, 2022, which is the date Keppel Pegasus demanded payment for an agreed break fee under an implementation agreement between the company and SPH.
On Oct 9, Keppel said the arbitral award is not expected to have a material impact on the group’s net tangible assets per share nor earnings per share for its current financial year.
The arbitral tribunal will decide on costs in a separate award, it added.
Shares of Keppel were trading down 0.15 per cent at $6.52 as at 9.25am on Oct 9, after the announcement.
The group was a contesting bidder in the lead-up to Cuscaden Peak’s eventual takeover of SPH in 2022 for $2.40 apiece, comprising $1.602 in cash and 0.782 of an SPH Reit unit through a distribution-in-specie by SPH.
Cuscaden is a consortium backed by Hotel Properties, businessman Ong Beng Seng and two Temasek-linked entities, CLA and Mapletree.
Its offer trumped Keppel’s last $2.351 per-share bid, consisting of $0.868 per share in cash, 0.596 of a Keppel real estate investment trust (Reit) unit, and 0.782 of an SPH Reit unit.
After SPH terminated Keppel’s implementation agreement relating to the latter’s takeover offer, Keppel began arbitration proceedings to enforce its rights and seek various reliefs against the company, including specific performance of SPH’s obligations. THE BUSINESS TIMES