Keppel Corporation Embarks on Strategic Restructuring

Keppel Corporation Limited, a Singapore-based industrial powerhouse, has made a pivotal move in its ongoing efforts to optimize its portfolio and drive growth. The company has reached a definitive agreement to divest its M1 telecommunications business to SIMBA in a deal valued at approximately SGD 14.3 billion.

This landmark transaction is expected to yield around SGD 10 billion in cash, providing a significant boost to Keppel’s liquidity position and enabling the company to further reduce its debt burden. The sale is also anticipated to enhance shareholder returns, as the company seeks to unlock value from its non-core assets and redeploy capital towards high-growth areas.

The divestment of M1 marks a strategic shift in Keppel’s focus, as the company looks to concentrate on its core ICT business and select high-potential assets. Specifically, Keppel will retain its data center and submarine cable businesses, which are poised to capitalize on the growing demand for digital infrastructure and connectivity solutions.

Key Highlights of the Transaction

• Sale price: approximately SGD 14.3 billion
• Expected cash yield: around SGD 10 billion
• Debt reduction: significant reduction in Keppel’s debt burden
• Shareholder returns: enhanced returns through the sale of non-core assets
• Strategic focus: concentration on core ICT business and select high-potential assets

This move is seen as a crucial step towards integrating the Singapore telecommunications industry, as Keppel seeks to create a more streamlined and focused business portfolio. With its strengthened balance sheet and enhanced liquidity position, Keppel is well-positioned to drive growth and create value for its stakeholders in the years to come.