In today’s briefing:
- Keppel (KEP SP) Vote on Keppel O&M and Sembcorp Marine Transaction on 8 Dec
- Grab (GRAB US) – Shifting Down a Gear for A Steep Ascent
Keppel (KEP SP) Vote on Keppel O&M and Sembcorp Marine Transaction on 8 Dec
- Keppel Corp (KEP SP)’s EGM on 8 December requires majority shareholder approval of two ordinary resolutions. The IFA notes that the transaction terms are “not prejudicial” to minorities.
- Keppel shareholders will be supportive due to attractive terms. The other key conditions precedent is Sembcorp Marine (SMM SP) shareholders and regulatory approvals (SGX-ST and Maritime Port Authority of Singapore).
- The deal is expected to close by the end of the year. Our Keppel SoTP valuation is S$8.30 per share, which is 12% above the last close.
Grab (GRAB US) – Shifting Down a Gear for A Steep Ascent
- Grab‘s recent results reflect a change of pace in terms of moving along the path to profitability with a more disciplined approach to incentives and a focus on cost controls.
- Deliveries segment adjusted EBITDA turned positive for the first time, 3Qs ahead of previous guidance, and food 2Qs ahead of guidance both of which are positives.
- A continuing drag will likely continue to come from expenses related to the buildout of its three digibanks. Grab‘s headline EBITDA is not forecast to be positive until 2025.
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