Mark Artherton, CFA

Inteqres

Equity Bottom-Up

Fundamental long term holders of Keppel Corp should consider trimming some of their position based upon their interpretation of the outcome of the partial tender and the timeframe involved.  Other Insight Providers on the platform have a clearer ability to call these factors.If the tender succeeds fundamental holders of shipbuilders should consider holding both Sembcorp Marine and Keppel O&amp;M and follow Temasek's plans closely.  A combined spin off of Keppel O&amp;M and then merger with Sembcorp marine could be a neat solution but is pure speculation at present.If the tender fails fundamental holders just need to smartly trade the situation and settle in for the long run as little will change.We are not big fans of this sector or the companies involved but this partial offer should lead to growing investor interest in the near term.  Even in the event of Temasek succeeding and  merger of the two companies we would be disinclined to get involved.

Fundamental long term holders of Keppel Corp should consider trimming some of their position based upon their interpretation of the outcome of the partial tender and the timeframe involved.  Other Insight Providers on the platform have a clearer ability to call these factors.If the tender succeeds fundamental holders of shipbuilders should consider holding both Sembcorp Marine and Keppel O&amp;M and follow Temasek's plans closely.  A combined spin off of Keppel O&amp;M and then merger with Sembcorp marine could be a neat solution but is pure speculation at present.If the tender fails fundamental holders just need to smartly trade the situation and settle in for the long run as little will change.We are not big fans of this sector or the companies involved but this partial offer should lead to growing investor interest in the near term.  Even in the event of Temasek succeeding and  merger of the two companies we would be disinclined to get involved.

Keppel Corp What to Do After the Partial Tender