K1 Ventures Limited

Kim Eng on 28 June 2012

K1 Ventures Limited announced yesterday evening that it has received a voluntary conditional cash offer for all of its shares, from GKB Holdings at SGD0.135 per share. The offer price represents a 19.5% premium above its last price of SGD0.113 and a 22.7% premium above its NTA of SGD0.11. The offer is conditional  upon GKB Holdings receiving at least 90% of voting rights by the close of the offer. The intention of GKB Holdings is to delist k1 Ventures given its low trading liquidity and high compliance costs to maintain listing status of the latter.

The current major shareholders of k1 Ventures are Kephinance Investment Pte Ltd (36.02%), Greenstreet
Partners L.P. (14.1%) and BV Singapore Holdings Ltd (12.24%), and they have given irrevocable
undertakings to accept the offer. They have also undertaken to waive their rights to receive the offer price in
cash and would instead receive ordinary shares in GKB Holdings under a share swap agreement. GKB
Holdings is an investment holding company incorporated on 25 June 2012 and its major shareholders are
also the current major shareholders of k1 Ventures.

Keppel Corp holds a 36% stake in k1 Ventures through its wholly-owned subsidiary, Kephinance Investment Pte Ltd. If the privatisation is successful, Keppel Corp would eventually end up with an effective stake of 45% in k1 Ventures, through Kephinance.

The impact on Keppel Corp is marginal. At a price of SGD0.135 per share, k1 Ventures would only account for 5.9 SG cents of our SGD12.70 SOTP target price for Keppel Corp. After the privatisation, Keppel’s effective stake would increase from 36% to 45% and this would account for 7.3 cents of Keppel Corp’s target price.