Keppel Corp announces major restructuring and growth plans

Singapore‘s Keppel Corp, a former conglomerate with operations in a variety of sectors including data centres and renewable energy assets, unveiled a significant corporate restructuring plan today. The reorganisation will see the company divided into three distinct units – fund management, investment, and operating platforms, aiming to simplify and foster growth.

The fund management arm will concentrate on raising funds, the investment platform will make capital investment decisions, and the operating platform will encompass its other current operations. Loh Chin Hua, the Chief Executive Officer at Keppel Corp, stated that the restructuring reflects a move towards operating with greater agility, leveraging technology for growth at speed and scale.

Building on its origins as a small ship repair yard, corporatised in 1968, Keppel is now working towards becoming an integrated global alternative real asset manager, with deep operating capabilities in infrastructure, real estate, and connectivity.

The company’s restructuring plan is expected to result in annual savings of between US$44.9 million and US$70 million by 2026. Additionally, Keppel aims to considerably increase its assets under management (AUM) to US$149.93 billion by 2030. An interim target has been set to attain AUM worth US$100 billion by the end of 2026 – double the amount recorded at the end of last year.

Keppel is now targeting between US$10 billion and US$12 billion in cumulative asset monetisation by the close of 2026. Since its launch in late 2020, the company has already achieved asset monetisation amounting to US$4.9 billion as of the end of the first quarter of fiscal 2023, reports Channel News Asia.