August 2, 2010
Keppel ups stake in Subic Bay shipyard
Singapore's Keppel Corporation Limited, via subsidiary Keppel Philippines Marine Inc., is raising its shareholdings in two associated companies, Subic Shipyard and Engineering Inc. (SSEI) and Consort Land, Inc. (CLI).
SSEI, in Subic Bay, provides repair, conversion and building services to shipowners and offshore operators and also carries out routine and specialized machinery reconditioning plus steel fabrication for marine and offshore structures. Consort Land owns 72 ha of land including the 20 ha on which SSEI is situated.
A total cash consideration of approximately Singapore $86.5 million (about US $64 million) will be made by Keppel to raise its effective stakes from 44% to 83.9% in SSEI and from 33.7% to 38.7% in CLI. The sale and purchase of shares in both companies is expected to be completed by the end of September 2010, following which, SSEI will become a Keppel subsidiary.
Mr Nelson Yeo, Managing Director (Marine) of Keppel Offshore & Marine and Chairman of KPMI, said, "We have been present in the Philippines for more than three decades, and are continuously improving on the safety, quality and productivity of our yards, as well as equipping them to undertake more sophisticated work to meet the increasing market demand for high value services.
"The move to take a bigger share in the Subic shipyard reinforces our Near Market, Near Customer strategy to enhance the depth and breadth our services to global customers. It also demonstrates our confidence in the offshore and marine industry. As a majority shareholder, Keppel will be in a better position to add value to the Subic shipyard and fortify our offerings to meet the growing needs of our customers."