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SINGAPORE – Keppel Corp is looking to sell about $ 3 billion to $ 5 billion in assets over the next three years and reallocate funds to take advantage of new opportunities and improve returns.
The move comes as the firm executes long-term plans to build growth engines for the future, Keppel CEO Loh Chin Hua said in a virtual briefing on Tuesday (September 29).
“As we pursue our growth initiatives in data centers, environmental solutions, renewable energy, integrated urban development and asset management, we will also need to review our business portfolio from time to time,” added Loh, who did not disclose the assigned segments. . for disposal of assets.
Keppel, one of the world’s largest oil rig manufacturers, said it has identified assets with a total book value of around $ 17.5 billion as of June 30 that can be sold over time, with the proceeds channeled into investment initiatives. increase.
These include the group’s land bank, development projects, various funds and investments, as well as nonessential assets such as Keppel O & M’s oil rigs. Loh declined to share further details, citing business sensitivity.
They do not include key trading platforms, fixed assets such as Keppel O&M shipyards, or some of the group’s units in real estate or other investment trusts.
In addition to asset sales, Keppel Corp is executing the rule on its offshore and marine business amid a challenging industry environment.
His options include reviewing Keppel O&M’s business model, assessing its capacity and global shipyard network, and restructuring to pursue opportunities as a renewable energy asset developer, as well as mergers and asset sales.
The review is being carried out as a “very immediate task” and all options will be considered, Loh said, noting that the exercise is aimed at maximizing long-term shareholder value.
While the process is still in a “very preliminary stage,” he said “it shouldn’t take years, it could take months.”
Loh’s comments came as Keppel reaffirmed the Vision 2030 roadmap presented in May that outlined the company’s focus on four key areas: energy and environment, urban development, connectivity and asset management.
Keppel’s accelerated implementation of Vision 2030 comes after Singaporean investment company Temasek, which is its largest individual shareholder, pulled out of its $ 4.1 billion partial offer to take control of the company from in light of its poor financial performance in August.
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