Keppel shares sink on Brazil bribery probe

Keppel shares sink on Brazil bribery probe

A worker passes a vessel modified and upgraded by Keppel Shipyard. (File photo: Reuters)
SINGAPORE: Shares of Keppel Corp slid from the get-go on Tuesday (Dec 26) as investors reacted to a disclosure over the weekend that its offshore rig-building business has agreed to pay US$422 million (S$567 million) in fines for a corruption probe across three jurisdictions in Singapore, Brazil and the US. The counter was last seen at S$7.260, down by 2.8 per cent or S$0.21, paring losses after opening down more than 4 per cent.The penalty relates to US$55 million in corrupt payments made by a former Keppel agent, Mr Zwi Skornicki, in Brazil between 2001 and 2014. They were made “in relation to several KOM (Keppel Offshore and Marine) projects in Brazil, which were made with knowledge or approval of former KOM executives”, the conglomerate said in a release on Saturday. Shares of Sembcorp Marine also came under selling pressure, down 2.57 per cent or S$0.05 to S$1.89 apiece. The company was also named among foreign companies that have done business with people who are under investigation in Brazil as part of a massive corruption probe involving Brazil’s state-run oil company Petrobras. 
The broader Straits Times Index was last seen near the flatline in early morning trade at 3,384.79. About 89 million shares worth S$131.1 million in total changed hands. Gainers outnumbered losers 94 to 78.
Source: CNA/sk
Source : http://www.channelnewsasia.com/news/business/keppel-shares-sink-on-brazil-bribery-probe-9526136