Temasek Holdings has dropped its SGD 4.1bn ($3bn) partial offer for Keppel Corp in a move that has taken many in the industry by surprise.
The sovereign wealth fund invoked a material adverse change (MAC) clause after Keppel posted a large second-quarter loss that breached a threshold in its offer to buy control of the offshore shipyard group.
“The offeror has decided it will invoke the MAC precondition, and accordingly, is announcing today that the partial offer will not proceed,” Temasek said in a regulatory filing.
