Yesterday evening, KepCorp announced that it now owns 93.2% of KepLand and that the offer closing date will be extended to next Tuesday (31 Mar 2015). KepCorp has indicated that it will proceed to delist the company at the end of the offer, now that the public float has fallen under 10%.

Looking ahead, we highlight that KepCorp will need to own more than 95.5% of KepLand before being able to compulsorily acquire all remaining shares. The 95.5% compulsory acquisition threshold is also the level at which KepCorp’s offer price will be raised to S$4.60. We recommend shareholders to ACCEPT THE OFFER.

Source: OCBC Research - 27 Mar 2015