Keppel divests fleet of feeder vessels

The latest major development in the Keppel Group?s divestment plans is the sale of its, entire fleet of ten feeder ships for a total cash consideration of US$90.9 million.

About the divestment, Keppel Group Finance Director Mr Teo Soon Hoe said: “We have decidedly chosen only to dispose of the vessels at the right price, and, in the process, extract maximum value for our shareholders. Our objective is to focus on our key businesses. Proceeds from this sale will be used to grow them.”

The ten vessels were sold to Interorient Navigation Co. Ltd. or its nominees on a willing buyer willing seller basis, taking into account the vessels? specifications and condition. Completion is expected to take place by 30 April 2004.

Six of the vessels are wholly owned by Keppel Telecommunications & Transportation Ltd (KTT), an 81%-owned subsidiary of Keppel Corporation Limited (KCL), while the remaining four are 60% owned by KCL and 40% by KTT. The net book value of the ten vessels as at 29 February 2004 was S$105.8 million. The total amount of net gain attributable to KCL is approximately S$35.7 million or 4.6 cents per KCL share.

This divestment follows KCL?s recent disposal of a 28% interest in Singapore Petroleum Company in October 2003.