Keppel says O&M unit has fully paid its fines to Brazilian authorities

Yong Hui Ting

Published Mon, Jan 30, 2023 · 08:46 AM

KEPPEL Offshore & Marine (Keppel O&M) said on Monday (Jan 30) that it has made full payment of the fines and damages payable worth 343.6 million reais (S$88.2 million) to Brazil under a leniency agreement that had been set out earlier.

This comes after both the Attorney-General’s Chambers of Singapore and the Corrupt Practices Investigation Bureau confirmed that Keppel O&M may seek crediting of up to US$52.8 million in fines payable to the Brazilian authorities.

Keppel O&M, a unit under Keppel Corporation, is currently working towards a merger with Sembcorp Marine (Sembmarine) after shareholders approved the proposed merger through an extraordinary general meeting last December.

While terms of the deal are still being finalised, Sembmarine had announced last Friday that it has received approval in-principle from the Singapore Exchange Securities Trading (SGX-ST) for the merger.

This was, however, conditional upon the company dispatching a circular in relation to the proposed merger by Jan 31.

Other conditions listed by SGX-ST include compliance with its listing requirements, disclosure that nothing to their knowledge may result in a material and adverse impact on the valuation of Keppel O&M and its subsidiaries as well as shareholder approval from Sembmarine for the allotment and issuance of up to 36,848,072,918 Keppel O&M consideration shares.