Keppel Pegasus, a wholly-owned subsidiary of Keppel Limited, has been awarded $34 million by the arbitral tribunal on Oct 7. The award comes after Keppel Pegasus filed a notice of arbitration against Singapore Press Holdings (SPH) on Feb 9, 2022.
“Keppel Pegasus does not agree with SPH's attempted purported termination of the Keppel implementation agreement and is of the view that SPH is obliged to continue with the implementation of the Keppel scheme in accordance with the terms of the Keppel implementation agreement,” said Keppel at the time.
SPH, which is now known as Cuscaden Peak Investments Private Limited, had sent Keppel Pegasus a letter on Jan 24, 2022, that it intended to consult the Securities Industry Council (SIC) to terminate the implementation agreement entered between the parties.
Keppel, on Aug 2, 2021, announced that it will acquire all of SPH’s issued and paid-up ordinary shares through Keppel Pegasus with the intention to delist and privatise SPH. Keppel and SPH entered into an implementation agreement on the same day to establish the terms and conditions on which Keppel and SPH will implement the scheme.
The arbitration amount includes “simple interest” calculated from April 29, 2022 till payment by SPH at 5.33% per annum (p.a.). April 29, 2022, was when Keppel Pegasus demanded payment of an agreed break fee under the implementation agreement between the company and SPH.
Shares in Keppel closed 12 cents lower or 1.81% down at $6.53 on Oct 8.
