Keppel Corporation Ltd :Signs Non-Binding Mous In Connection With Proposed Combination Of Keppel O&M And Sembcorp Marine.Intends To Distribute To Shareholders All Combined Entity Shares That It Receives By Way Of Distribution In Specie.Proposed Transactions Expected To Be Earnings Accretive For Current Financial Year On A Pro Forma Basis.If Successfully Completed, Keppel Corporation Will Receive Shares In Combined Entity And A Cash Consideration.If Proposed Deal With Sembcorp Completed, Keppel Will Also Get Cash Consideration Of Up To S$500 Million.Signs Non-Binding Mou With Kyanite, Temasek Unit, With View To Sell O&M'S Legacy Rigs Completed And Uncompleted Rigs And Associated Receivables.Keppel Will Hold 50% Of A 50-50 Jv That Will Be Established Between Keppel And Combined Entity.The Two Proposed Transactions Will Be Inter-Conditional And Pursued Concurrently.Keppel Group'S Net Debt Will Fall As A Result Of Deconsolidation Of Keppel O&M.Distribution In Specie Of Shares In Combined Entity Will Reduce Keppel'S Shareholders' Funds.O&M'S Interests In Floatel International Ltd And Dyna-Mac Holdings Ltd Will Be Retained By Keppel Corp.Group'S Net Gearing Is Not Expected To Be Significantly Affected Following Transactions.Keppel O&M Will Remain Focused On Delivering Existing Contracts.External Investors To Provide Capital Which Can Be Used For Finishing Uncompleted Rigs, & No Longer Be Funded By Keppel.Economic Exposure In Asset Co Will Be Reduced Over Time.
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