Keppel reviews assets

Keppel has put its offshore and marine business under the spotlight as part of plans to value from SGD 3.00 billion to SGD 5.00 billion (USD 2.19 billion to USD 3.65 billion) in the next three years.

Chairman Lee Boon Yang said the board and management are committed to realising the Singaporean conglomerate’s full potential as an integrated business operating in growing and resilient markets.

It has identified opportunities within its focus areas of energy and environment, urban development, connectivity, and asset management.

“With a sharpened business focus and an asset-light model, we are taking a disciplined approach to capital allocation,” he noted.

Chief executive Loh Chin Hua noted: “As we pursue our growth initiatives in data centres, environmental solutions, renewable energy, integrated urban development and asset management, we will also need to review our business portfolio from time to time.”

Keppel said it has identified assets with a total carrying value of SGD 17.50 billion, based on the balance sheet, as at 30th June 2020, that it can make money on by selling off.

These range from the group’s landbank, which is held at historical cost, and development projects to investment properties and noncore activities, such as Keppel Offshore & Marine’s (Keppel O&M’s) oil rigs.

It will not include key business platforms, fixed assets such as Keppel O&M’s yards, or some of the units held in real estate or other investment trusts that are aligned with the conglomerate’s interests.

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Concurrently, Keppel will start a “strategic review of its offshore and marine business amid the sector’s challenging environment, exploring both organic and inorganic options”.

Zephus, the M&A database published by Bureau van Dijk, shows 610 deals targeting companies based in Singapore have been announced in 2020 to date.

Nine of these are each worth more than USD 1.00 billion.

© Zephus Ltd

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