Keppel to pay USD63.6M to raise stake at Subic Shipyard

as Keppel pays $86.5m to raise stakes in Philippines yards

By ANGELA TAN - businesstimes.com.sg

Keppel Corporation Limited, through a subsidiary Keppel Philippines Marine Inc (KPMI), is raising its shareholdings in two associated companies, Subic Shipyard and Engineering Inc (SSEI) and Consort Land, Inc (CLI) to be nearer to its customers in the Philippines.

Keppel will pay $86.5 million (US$63.6 million) to raise its effective stakes from 44 per cent to 83.9 per cent in SSEI and from 33.7 per cent to 38.7 per cent in CLI.

The sale and purchase of shares in both companies is expected to be completed by the end of September 2010, following which, SSEI will become a Keppel subsidiary.

SSEI is a leading shipyard located in Subic Bay, the Philippines, which provides repair, conversion and building services to shipowners and offshore operators in the region. It also carries out routine and specialised machinery reconditioning works, as well as steel fabrication for marine and offshore structures. CLI owns 72 ha of land including the 20 ha on which SSEI is situated.