UPDATE 1-S'pore's SPC, Keppel Corp soar on PetroChina deal

lunedì 25 maggio 2009 07:39

 * Keppel may use cash to support KepLand, take on projects
 * CIMB says Keppel may have net cash position of S$1 bln
 (updates share prices, analyst quote)
 SINGAPORE, May 25 (Reuters) - Shares of Singapore Petroleum
Co (SPC) SPCS.SI soared as much 24 percent on Monday after
China's PetroChina (0857.HK: Quotazione) said it will buy Keppel Corp's
(KPLM.SI: Quotazione) 45.5 percent stake in the oil refiner.
 Keppel Corp shares also jumped, up as much as 10 percent
following Sunday's news that PetroChina will pay S$1.47 billion
($1.02 billion) for the stake and plans to make a general offer
to buy the rest of the firm. [ID:nSIN335305]
 The deal valued SPC at S$3.2 billion, or about S$6.25 per
share, well above Friday's closing price of S$5.04.
 By midday, SPC was up around 21 percent at S$6.09 with 6.4
million shares traded, while Keppel was 5.3 percent higher at
S$7.33, both comfortably out-performing a 0.3 percent rise in
the benchmark Singapore index .FTSTI.
 PetroChina's Hong Kong-listed shares fell 0.5 percent, in
line with a decline in the Hang Seng index .HSI.
 Analysts said the deal will bolster Keppel Corp's cash
position to take on more projects, distribute cash to
shareholders and support Keppel Land KLAN.SI, which is in the
midst of raising S$712.3 million via a rights issue.
"The sale will place the group in a net cash position of
about S$1 billion after Keppel Land's rights issue," said CIMB
analyst Lim Siew Khee. "We would expect the Keppel Group to
distribute 40-50 percent of the net gain of S$660 million from
the sale, translating into 20 cents per Keppel Corp share."
 SPC shares a 285,000 barrels per day refinery in Singapore
with U.S. energy major Chevron Corp (CVX.N: Quotazione), and it also owns
upstream oil and gas exploration and production concessions in
Australia, Southeast Asia and China.
 The deal will be the first overseas acquisition of a public
company by PetroChina, and the move to get downstream fuel
production adds to efforts by Chinese oil majors to buy
upstream oil exploration assets around the world to secure
energy supplies.
 Keppel, the world's largest offshore oil rig builder, said
in the statement that together with PetroChina it plans to
explore opportunities in the offshore oil industry and in other
 (Reporting by Eveline Danubrata; Editing by Kevin Lim and
Lincoln Feast)