Keppel unit awarded S$34 million for 2022 arbitration case against Cuscaden Peak
Source: Business Times
Article Date: 09 Oct 2024
Author: Michelle Zhu
Keppel began arbitration proceedings to enforce its rights and to seek various reliefs against the company.
Keppel's wholly owned subsidiary Keppel Pegasus was awarded S$34 million plus interest for its arbitration proceedings against Cuscaden Peak Investments, then known as Singapore Press Holdings (SPH).
The interest rate will be 5.33 per cent per annum from Apr 29, 2022, which is the date Keppel Pegasus demanded payment for an agreed break fee under an implementation agreement between the company and SPH.
On Tuesday (Oct 9), Keppel said the arbitral award is not expected to have a material impact on the group’s net tangible assets per share nor earnings per share for its current financial year.
The arbitral tribunal will decide on costs in a separate award, it added.
Shares of Keppel closed S$0.12 or 1.8 per cent lower at S$6.53 on Tuesday, before the announcement.
The group was contesting bidder in the lead-up to the Cuscaden Peak’s eventual takeover of SPH in 2022 for S$2.40 apiece, comprising S$1.602 in cash and 0.782 of an SPH Reit unit through a distribution-in-specie by SPH.
Cuscaden is a consortium backed by Hotel Properties Limited, businessman Ong Beng Seng, and 2 Temasek-linked entities, CLA and Mapletree.
Its offer trumped Keppel’s last S$2.351 per-share bid, consisting of S$0.868 per share in cash, 0.596 of a Keppel real estate investment trust (Reit) unit, and 0.782 of an SPH Reit unit.
After SPH terminated Keppel’s implementation agreement relating to the latter’s takeover offer, Keppel began arbitration proceedings to enforce its rights and to seek various reliefs against the company, including specific performance of SPH’s obligations.
Source: Business Times © SPH Media Limited. Permission required for reproduction.
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