Daily Brief Singapore: Chip Eng Seng Corp, Keppel Corp and more

In today’s briefing:

Chip Eng Seng (CHIP SP)’s Revised S$0.75 VGO from the Tangs
Last Week in Event SPACE: Keppel/Sembcorp, Carbon Revolution, Toyo Construction, Fuji Oil, Toshiba
Offer Price for Chip Eng Seng Bumped And Declared Final

Chip Eng Seng (CHIP SP)’s Revised S$0.75 VGO from the Tangs

Chip Eng Seng Corp (CHIP SP) disclosed a revised conditional VGO from the Tangs at S$0.75, a 4.2% premium to the previous offer of S$0.72. The offer is final.
The offeror (47.27% of outstanding shares) and immediate family represent 50.49% of outstanding shares or 48.63% of diluted shares, which is just shy of the 50%+ minimum acceptance condition.
The bump was to increase the chances of privatisation rather than hitting the 50%+ minimum acceptance condition. At the last close, the gross spread is 1.4%.

Keppel Corp (KEP SP) shareholders vote next week. Sembcorp Marine (SMM SP) shareholders are awaiting their Circular. Expect both sets of shareholders will approve. The optics and performance look good.
Carbon Revolution Ltd (CBR AU) SPAC Offer is a high-cost red-herring. Management who support this takeover should be fired.
Nintendo Founder Family Office “YFO” bought 25+% of Toyo Construction (1890 JP), then offered to buy it out. Negotiations are ongoing. We still don’t really know what is going on.

In Chip Eng Seng: Low-Balled MBO At $0.72/Share, I thought there was scope for a bump. But then the Tang family bought a 9.02% stake on market.
The Tangs have now bumped the Offer Price for Chip Eng Seng Corp (CHIP SP) to S$0.75/share, up from S$0.72/share, and declared the terms final.
The Offer remains conditional on a 50% acceptance hurdle. With 47.27% in the bag, this is done.

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