KEPPEL CORPORATION LIMITED
BN4.SI
Keppel Corporation: To consolidate and grow asset management business
- Keppel Corporation (KEP) announced this morning that it plans to consolidate its interests in business trust management, REIT management and fund management businesses under Keppel Capital Holdings, a wholly-owned subsidiary KEP.
- As such, Keppel Infrastructure Fund Management Pte. Ltd. (the trusteemanager of Keppel Infrastructure Trust), Keppel DC REIT Management Pte. Ltd. (the manager of Keppel DC REIT), Keppel REIT Management Ltd (the manager of Keppel REIT), and Alpha Investment Partners Limited (a fund manager) will be under Keppel Capital after the exercise.
- There will also be the centralisation of certain non-regulated support functions such as legal and compliance, IT and accounting support.
- After the consolidation (est. by 2H16), Keppel may consider increasing the scope of support functions to include regulated activities relating to investments and asset management.
- We are positive on this development as it helps to strengthen the group’s capital platform for coinvesting, without relying solely on its balance sheet. However, headwinds from the O&M industry remain strong.
- Maintain HOLD with S$4.38 fair value estimate.
Low Pei Han CFA
OCBC Securities
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http://www.ocbcresearch.com/
2016-01-25
OCBC Securities
SGX Stock
Analyst Report
4.38
Same
4.38
