Keppel Corp — which is linked to Temasek Holdings Pte — has raised its offer to buy Singapore Press Holdings Ltd by 12% after a competitor entered a bid.

In its revised bid, Keppel is offering S$2.351 per share, which includes additional cash of S$0.20 per share — higher than its original proposal of S$2.099 per share in August.

Keppel, whose operations span from rig building to infrastructure and renewable energy, said it’s making a “firm and irrevocable offer” in a statement filed on the Singapore Exchange late Tuesday.

“Keppel’s final consideration provides SPH shareholders with a compelling offer, with the highest deal certainty and, if the transaction is approved, the fastest payout,” the company said.

The latest offer tops a bid made last month for SPH by units of investment giants Temasek and Mapletree Investments Pte, through a consortium called Cuscaden Peak Pte.

The group, which also includes a company tied to Singapore property tycoon Ong Beng Seng, offered S$2.10 a share for the company, though that has yet to be accepted by SPH.

The proposal is contingent on the completion of the spinoff of SPH’s media operations as announced in May, and approval by a majority of its shareholders.

Takeover battle

The Keppel-Cuscaden bidding war for SPH is setting up a tantalising takeover battle that’s rarely seen in Singapore. Prior to Keppel raising its bid, SPH shareholders have lamented that the company is still undervalued even with Cuscaden’s offer.

Up for grabs are SPH’s assets including shopping malls located in Singapore and Australia, student accommodation in the UK and Germany, and a local nursing home chain, according to its website. It also has investments in the education and events business.

SPH and Keppel as well as their real estate investment trusts suspended trading on Wednesday morning. SPH’s shares closed at S$2.16 on Tuesday, while those of Keppel last traded at S$5.31.