04 Jan 2005

Keppel O&M now wholly owns Brazilian operations

Keppel Offshore & Marine Ltd (Keppel O&M), the wholly owned subsidiary of Keppel Corporation Limited, has acquired from the PEM Setal Group the latter’s entire 17.25% interest in FELS Setal S.A.

The cash consideration for the purchase is US$5 million. This was arrived at on a willing buyer and willing seller basis taking into account the net assets of the company and existing contracts.

With the acquisition, FELS Setal will become a wholly owned subsidiary of Keppel O&M, and will be renamed Keppel FELS Brazil SA.

The sale by PEM Setal is due to PEM Setal’s restructuring programme for its group of companies.

Keppel O&M is a global leader in offshore rigs and ship conversion and repair as well as a specialised shipbuilder. Its subsidiary is the industry leader in Brazil and operates the best-equipped offshore yard in South America.

The book value and net asset value of the sale shares as at 31 Dec 2003 was US$1.74 million.

The transaction is not expected to have any material impact on the earnings per KCL share and net tangible assets per KCL share for the financial year 2005.


For further information, please contact:

Sarah Seah (Ms)
Deputy General Manager
Group Corporate Communications
Tel: (DID) [65] 64136420 (Cell) [65] 93630274
Email: sarah.seah@kepcorp.com

This press release is also available at www.kepcorp.com and www.keppelom.com