Listed Real Estate Asia, KT Capital Group

Jacob Cheng

Listed Real Estate Asia

KT Capital Group

Principal investments and advisory firm that focuses on connecting the CIS countries with East Asia.

Principal investments and advisory firm

Equity Bottom-Up

<ul>
<li>Keppel is an asset manager and operator with business in infrastructure, real estate and connectivity</li>
<li>The company is undergoing transformation from an asset-heavy conglomerate to an asset light manager with strong recurring income</li>
<li>We also like the strong capital management and its focus on total shareholder returns, valuation is not demanding</li>
</ul>


Keppel is an asset manager and operator with business in infrastructure, real estate and connectivity
The company is undergoing transformation from an asset-heavy conglomerate to an asset light manager with strong recurring income
We also like the strong capital management and its focus on total shareholder returns, valuation is not demanding


Keppel: A Growing Asset Manager on a Transformational Path

Director and Founding Member, Corporate Monitor Limited

Tan Yee Peng

Director and Founding Member

Strengthening Corporate Performance

Corporate Monitor Limited

Corporate Monitor was established to encourage better performance of companies, particularly companies listed on the SGX, and hold their management and boards to account, for the benefit of their shareholders and stakeholders.

<ul><li>Keppel's Vision 2030, announced in May 2020, envisages that it would become a global asset manager and operator, with Funds Under Management ("FUM") of S$200bn.</li><li>In this report we are focusing on Keppel’s private funds, which account for 70% of its current FUM.</li><li>Based on Keppel’s publicly released materials, Keppel’s strategy to reach their goal is separated into 3 key components.</li></ul>

Keppel's Vision 2030, announced in May 2020, envisages that it would become a global asset manager and operator, with Funds Under Management ("FUM") of S$200bn.In this report we are focusing on Keppel’s private funds, which account for 70% of its current FUM.Based on Keppel’s publicly released materials, Keppel’s strategy to reach their goal is separated into 3 key components.

Keppel Ltd: Part V – Transforming into a Global Asset Manager

<ul><li>Keppel Ltd, once renowned for its offshore marine and real estate businesses, is undertaking a fundamental transformation to become a global asset manager with S$200bn in funds under management (FUM) by 2030.</li><li>It is unprecedented for an industrial operator to successfully transform into an asset manager of such scale.</li><li>As such, close attention ought to be given to the progress and prospects of Keppel’s transformation. </li></ul>

Keppel Ltd, once renowned for its offshore marine and real estate businesses, is undertaking a fundamental transformation to become a global asset manager with S$200bn in funds under management (FUM) by 2030.It is unprecedented for an industrial operator to successfully transform into an asset manager of such scale.As such, close attention ought to be given to the progress and prospects of Keppel’s transformation. 

<ul><li>This report aims to examine the rationale and structure of the transformative deal in February 2023 when Keppel spun out its Offshore and Marine (“O&amp;M”) division.</li><li>This AssetCo transaction was selected because (1) The substantial size, at S$4.4bn, was equivalent to 14% of Keppel’s assets or 37% of its shareholder equity as of Dec 2022.</li><li>(2) Highly complex transaction with extremely generous financing terms granted by Keppel, which received no cash for selling legacy rigs at its carrying cost.</li></ul>

This report aims to examine the rationale and structure of the transformative deal in February 2023 when Keppel spun out its Offshore and Marine (“O&amp;M”) division.This AssetCo transaction was selected because (1) The substantial size, at S$4.4bn, was equivalent to 14% of Keppel’s assets or 37% of its shareholder equity as of Dec 2022.(2) Highly complex transaction with extremely generous financing terms granted by Keppel, which received no cash for selling legacy rigs at its carrying cost.

Keppel – Is There More to the Keppel O&M Deal than Meets the Eye?

SGX Market Strategist, Equity & Fixed Income, Singapore Exchange Ltd (SGX)

Geoff Howie

SGX Market Strategist, Equity & Fixed Income

Asia’s leading multi-asset exchange

Singapore Exchange Ltd (SGX)

Singapore Exchange is Asia’s leading and trusted market infrastructure, facilitating the exchange of capital and ideas to create value for people, businesses and economies. As a multi-asset exchange operating equity, fixed income and derivatives markets to the highest regulatory standards, SGX is a vertically integrated business that provides listing, trading, clearing, settlement, depository and data services.

With about 40% of listed companies and over 80% of listed bonds originating outside of Singapore as well as established linkages across the region and in Europe, SGX is Asia’s most international and connected exchange. Offering a full suite of derivatives products across Asian equity indices, commodities and currencies, SGX is the world’s most liquid international market for the benchmark equity indices of China, India, Japan and ASEAN.

As Asia’s pioneering central counterparty, SGX is globally recognised for its risk management and clearing capabilities, and was one of the first globally to adopt the Principles for Financial Market Infrastructure.

Headquartered in AAA-rated Singapore, SGX has over 800 employees including offices in Beijing, Chicago, Hong Kong, London, New York, Mumbai, San Francisco, Shanghai and Tokyo.

<ul><li>Over the five trading sessions from Nov 22 to 28, institutions were net buyers of Singapore stocks, resulting in a net institutional inflow of S$188 million, reversing the net outflow of S$38 million observed over the five preceding sessions up to Nov 21.</li><li>Stocks that led the net institutional inflow over the five sessions through to Nov 22 were Yangzijiang Shipbuilding Holdings, Oversea-Chinese Banking Corporation, Keppel, CapitaLand Integrated Commercial Trust, Singapore Exchange, United Overseas Bank, Seatrium, Jardine Matheson Holdings, Eneco Energy and Thai Beverage Public Co.</li><li>On Nov 22, Lim Keen Ban Holdings Pte Ltd acquired 1.6 million shares of Cortina Holdings at S$2.90 per share.</li></ul>

Over the five trading sessions from Nov 22 to 28, institutions were net buyers of Singapore stocks, resulting in a net institutional inflow of S$188 million, reversing the net outflow of S$38 million observed over the five preceding sessions up to Nov 21.Stocks that led the net institutional inflow over the five sessions through to Nov 22 were Yangzijiang Shipbuilding Holdings, Oversea-Chinese Banking Corporation, Keppel, CapitaLand Integrated Commercial Trust, Singapore Exchange, United Overseas Bank, Seatrium, Jardine Matheson Holdings, Eneco Energy and Thai Beverage Public Co.On Nov 22, Lim Keen Ban Holdings Pte Ltd acquired 1.6 million shares of Cortina Holdings at S$2.90 per share.

DBS buys back nearly S$15m of its shares; AGT Partners becomes Oiltek’s substantial shareholder

Singapore

Keppel Corporation Limited's core businesses are offshore and marine, infrastructure, property investment and development, telecommunications and transportation, energy, and engineering.

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Keppel Corp (KEP SP)

Keppel: A Growing Asset Manager on a Transformational Path

Keppel is transforming from an asset heavy conglomerate to an asset light asset manager. Keppel has strong presence in infra, real estate and DC. ...

Jacob Cheng

Keppel Ltd: Part V – Transforming into a Global Asset Manager

Keppel's Vision 2030, announced in May 2020, envisages that it would become a global asset manager and operator, with Funds Under Management...

Corporate Monitor Limited

Keppel: Study on Disclosure (Report 1)

Keppel Ltd, once renowned for its offshore marine and real estate businesses, is undertaking a fundamental transformation to become a global asset...

Corporate Monitor Limited

Keppel – Is There More to the Keppel O&M Deal than Meets the Eye?

This report aims to examine the rationale and structure of the transformative deal in February 2023 when Keppel spun out its Offshore and Marine...

Corporate Monitor Limited

DBS buys back nearly S$15m of its shares; AGT Partners becomes Oiltek’s substantial shareholder

Over the five trading sessions from Nov 22 to 28, institutions were net buyers of Singapore stocks, resulting in a net institutional inflow of...

Singapore Exchange Ltd (SGX)

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Market Cap (USDm)

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