Possible Acquisition by Associated Company

Keppel Corporation Limited (the “Company”) wishes to announce that its associated company, Aqua Pellentesque Limited (“Aqua”) 1, has entered into a Heads of Agreement for the acquisition of shares in the capital of Floatel International Ltd (“Floatel”, a company listed on Oslo Bors) that are not held by certain existing shareholders of Floatel (including Wideluck Enterprises Limited, a wholly owned subsidiary of the Company).

The Heads of Agreement with Floatel is entered into with a view to the parties entering into a detailed and definitive amalgamation agreement to implement the acquisition of shares at a cash consideration of NOK 19.50 per Floatel share. 

The Company will make a further announcement once a decision has been made to enter into the definitive amalgamation agreement.

None of the directors or controlling shareholders of the Company has any interest, direct or indirect, in the above transaction.

The acquisition is not expected to have any material impact on the earnings per share and the net tangible asset per share of the Company for the current financial year.

BY ORDER OF THE BOARD
Caroline Chang
Company Secretary

14 August 2011

*Wideluck Enterprises Ltd, a wholly owned subsidiary of the Company, has a 50% shareholding interest in Aqua. Wideluck Enterprises Ltd also holds approximately 31.7% of the issued shares in Floatel.