Keppel has divested its 23.91% stake in Dyna-Mac Holdings NO4 to entities controlled by Korean conglomerate Hanwha in a married deal for $100 million.
With Keppel's stake of 250 million shares, that works out to 40 cents per share, which is a premium over Dyna-Mac's closing price of 36 cents on May 9 and 37 cents on May 10 respectively.
Keppel first invested in Dyna-Mac back in 2011 at 35 cents each, or a total of $87.5 million.
Back then, Keppel's key business was in offshore and marine and the Dyna-Mac's focus on topside modules makes it a clear fit.
With Keppel's divestment of this business to focus on energy and asset management, Dyna-Mac has become one of the assets sold off as part of Keppel's bid to recycle its assets.
In an SGX filing on May 10, Keppel sold 2.39% of the stake to Hanwha Aerospace Co and 21.52% to Hanwha Ocean Co.
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"The consideration was arrived at on a willing buyer willing seller basis, taking into account the historical and current traded prices of Dyna-Mac's shares," says Keppel.
Following this transaction, Keppel has fully divested its shareholding interest in Dyna-Mac.
According to Keppel, the Divestment is not expected to have any material impact on the net tangible assets per share or earnings per share for the current FY2024.
