Keppel Corp. : SGXNET: Increase In Shareholding In Associated Company

INCREASE IN SHAREHOLDING IN ASSOCIATED COMPANY

Keppel Corporation Limited (the "Company" or "KCL") wishes to announce that its indirect wholly-owned subsidiary, Devan International Limited ("Devan"), has on 13 January 2012 entered into a sale and purchase agreement ("SPA") with Consema AS ("Consema") for the purchase of 3,696,464 shares, representing 27.5% of the issued share capital in Skeie Energy AS ("Skeie Energy"), KCL's associated company, for an aggregate cash consideration of NOK 27.50 ("SE Shares").
The aggregate cash consideration of NOK 27.50 for a 27.5% equity interest in Skeie Energy was arrived at on a willing buyer willing seller basis taking into account the net tangible liabilities of a 27.5% equity interest in Skeie Energy at 30 November 2011 being negative NOK 5.61 million and internal restructuring of the debt and equity in Skeie Energy, and will be funded through internal working capital.
The completion of the sale and purchase of SE Shares are conditional, inter alia, upon the following:
(a) the receipt of approval from the relevant authorities in relation to the transaction contemplated by the SPA; and
(b) there is no breach by Consema of any of the warranties contained in the SPA.
None of the directors or controlling shareholders of the Company has any interest, direct or indirect, in the aforementioned transaction.
Following completion of the sale and purchase of SE Shares, Devan's interest in Skeie Energy will increase from 21.5% to 49.0%.
The foregoing transaction is not expected to have any material impact on the net tangible assets and earnings per share of the Company for the current financial year.
A copy of the SPA may be inspected at the registered office of the Company at 1 HarbourFront Avenue
#18-01 Keppel Bay Tower Singapore 098632 during normal business hours for a period of three (3)
months from the date of this announcement