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SINGAPORE: Singaporean conglomerate Keppel Corp said on Tuesday (September 29) that it had identified assets worth S $ 17.5 billion that could potentially be monetized, including through sales, and began a review of its offshore and marine business (O&M). ) at a loss.
The plans unveiled on Tuesday are part of Keppel’s 10-year strategy that it had outlined earlier this year to refocus its portfolio on energy and environment, urban development, connectivity and asset management.
Keppel said it was exploring options including strategic mergers and divestitures for its offshore and marine business, which builds oil rigs and has been hit by falling energy prices.
In August, Temasek Holdings abandoned its offer of S $ 4.1 billion to increase its stake in Keppel to a majority stake after the company reported weak results.
Analysts have long expected consolidation in the rig construction sector through a deal between Keppel’s O&M business and its smaller rival, Sembcorp Marine. Anticipation of a deal was strengthened in June, when Temasek backed a S $ 2.1 billion rights issue by Sembcorp Marine.
Keppel, whose businesses range from telecommunications to real estate development, said it will seek to monetize up to S $ 5 billion in assets, such as some of its land and investment properties in the coming years.
The company “will seek to harness the current potential of the group by releasing around S $ 3 to S $ 5 billion of our monetizable assets over the next three years, which will be reallocated to take advantage of new opportunities and improve returns,” said CEO Loh Chin Hua in a statement. statement.
Keppel said the total assets it has identified to potentially monetize over time have a total book value of around S $ 17.5 billion.
