[SINGAPORE] Global asset manager Keppel on Monday (Mar 10) announced that its private investment vehicle Keppel Infrastructure Fund (KIF) and its co-investor acquired a 100 per cent stake in UK-headquartered Global Marine Group (GMG), from investment affiliates of JF Lehman and Company.
GMG is a subsea cable solutions provider operating a fleet of six vessels. It provides maintenance and installation services for the global subsea fibre optic cable network.
This acquisition marks the first investment by Keppel’s flagship infrastructure fund, which was previously known as Keppel Asia Infrastructure Fund II.
Keppel said KIF “provides growth capital to operating businesses and standalone projects in the infrastructure space and applies value-add investment strategies to its portfolio companies”.
The fund focuses on key sectoral themes such as the energy transition, circular economy and digital sectors.
Keppel noted that the market for maintenance and installation services is poised to grow at about 45 per cent compound annual growth rate from 2023 to 2029. This comes on the back of rising global demand for connectivity and the limited supply of specialised vessels.
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“GMG is well-positioned to maintain its high fleet utilisation of close to 100 per cent, supporting long-term sustainable growth,” said Keppel.
Christina Tan, Keppel’s chief executive of fund management and the group’s chief investment officer, noted: “With a substantial proportion of GMG’s business secured by long-term contracts with huge growth potential, especially in Asia, we are poised to deliver attractive risk-adjusted returns to our investors.”
She added that this investment “builds on Keppel’s digital infrastructure strategy” and supports the asset manager’s growth ambitions in the subsea cable business.
Noting that infrastructure deals such as GMG and the Bifrost Cable System are of a “global nature”, Keppel said KIF will continue to evaluate quality deals and platforms beyond Asia, should such opportunities arise.
This acquisition is not expected to have a material impact on Keppel’s net tangible assets or earnings per share for the current financial year.
Shares of Keppel closed 0.7 per cent or S$0.05 lower at S$6.77 on Friday.
