Keppel Corporation - OCBC Investment 2018-09-24: M1 & Keppel T&T Shares Halted This Morning

KEPPEL CORPORATION LIMITED SGX:BN4

Keppel Corporation - M1 & Keppel T&T Shares Halted This Morning

Keppel Corporation (SGX:BN4) announced this morning that together with Singapore Press Holdings (SGX:T39), it is considering a transaction involving its indirect interest with M1 (SGX:B2F) which may or may not lead to a transaction for the shares in M1. It is also concurrently considering a transaction involving its interest in Keppel T&T (SGX:K11), which may or may not lead to a transaction. Trading in both M1 and Keppel T&T shares have been halted this morning.

Recall that Keppel T&T has a 19.3% stake in M1, while Keppel Corp has a 79.2% stake in Keppel T&T. This may revive memories of a strategic review conducted by Axiata Group Berhad, SPH and Keppel T&T back in early 2017, which was dropped subsequently.
We have a BUY rating on Keppel Corp with a fair value estimate of S$8.38.
We currently have a HOLD rating on M1 with a fair value estimate of S$1.65.

Low Pei Han CFA OCBC Investment Research | https://www.iocbc.com/ 2018-09-24

SGX Stock Analyst Report BUY Maintain BUY 8.380 Same 8.380