Keppel Infrastructure Trust Unveils Bold Digital Expansion with \$119 Million Strategic Investment in Global Marine Group

Major Move into Digital Infrastructure Signals Next Leg of Growth for KIT

Keppel Infrastructure Trust (KIT) has announced a landmark proposal to acquire a 46.7% effective interest in Global Marine Group (GMG), a leading independent subsea cable solutions provider. The deal, subject to unitholders’ approval at an Extraordinary General Meeting (EGM) scheduled for November 11, 2025, marks KIT’s high-profile entry into the fast-growing digital infrastructure sector—a move set to reshape its portfolio and potentially drive significant value for shareholders.

Key Highlights from the Investor Presentation

• Strategic Capital Recycling: KIT has successfully divested its entire stake in Philippine Coastal for approximately \$192 million and a partial stake in Ventura for \$109 million, freeing up \$301 million for redeployment into higher-yielding opportunities. This capital recycling underlines KIT’s commitment to enhancing cash flow resilience and unlocking portfolio value.
• Portfolio Scale and Diversification: KIT’s assets under management (AUM) have surged to \$8.7 billion, driven by both organic growth and acquisitions across energy transition, environmental services, and distribution & storage. The GMG acquisition will further diversify KIT’s portfolio, introducing a digital infrastructure segment poised for rapid expansion.
• Financial Strength: KIT maintains a healthy net gearing of 38%, an interest coverage ratio of 13.1x, and \$530 million in undrawn credit facilities, providing ample flexibility for future growth and acquisitions. The Trust also completed early refinancing for EMK’s loan, extending its maturity to 2030 and achieving interest savings.

Proposed Investment in Global Marine Group: The Details

• Transaction Value: KIT will subscribe for a 46.7% interest in GMG for approximately US\$91.7 million (S\$119.2 million), alongside an additional equity commitment of up to US\$52.6 million (S\$68.4 million) to support GMG’s growth plans. There is also a provision for a future capital injection of up to US\$100 million (S\$130 million) over five years, although KIT is not obliged to participate.
• Joint Venture Structure: Post-completion, KIT and Keppel Infrastructure Fund (KIF) will each hold roughly 46.7% in the JVCo, with the remaining 6.7% held by a co-investor. The transaction is to be funded through internal resources and/or external borrowings.

GMG: A Strategic Asset for the Digital Age

• Recurring Revenue Model: GMG boasts highly predictable cash flows, with 80% of FY2024 revenue backed by long-term maintenance zone contracts and vessel charters. Its proprietary OceanIQ database, essential Universal Joint (“UJ”) products, and turnkey installation services serve top-tier customers including telecoms, hyperscalers, and global equipment suppliers.
• Market Leadership & High Barriers to Entry: GMG maintains over 450,000km of subsea cables worldwide, representing 31% of the global maintained subsea cable length. The scarcity of specialised cable vessels and entrenched relationships in consortium-maintained zones create formidable barriers for new entrants.
• Growth Catalysts: Industry tailwinds such as accelerating global data consumption, rapid cloud adoption, and supportive government digitalisation initiatives underpin robust demand for subsea cable infrastructure. Limited vessel supply and significant lead times for new builds favour established players like GMG.

Financial Impact: Accretive to KIT’s Distributable Income and Portfolio Resilience

• The acquisition is expected to be accretive to KIT’s distributable income and funds from operations (FFO). Pro forma estimates show a potential increase in DPU from 3.90 to 4.14 S\$ cents and FFO from S\$290.8 million to S\$297.9 million after the transaction and future capital injection.
• This move strengthens portfolio diversification, marks KIT’s entry into a high-growth segment, and establishes a strategic presence in digital infrastructure, all while leveraging Keppel’s proven connectivity and engineering expertise.

Shareholder Considerations: Price-Sensitive Developments

• EGM Approval Required: The acquisition and future capital injections hinge on unitholders’ approval of Ordinary Resolutions 1 and 2 at the EGM on November 11, 2025. The Independent Financial Adviser, PrimePartners Corporate Finance, has opined that the resolutions are on normal commercial terms and not prejudicial to minority unitholders.
• Portfolio Transformation: The entry into digital infrastructure is a material development for KIT, opening new avenues for growth and resilience that could have a meaningful impact on share value and investor perception.
• Dividend Upside: The projected accretion to DPU and FFO may positively influence KIT’s share price and dividend outlook.
• Strong ESG Credentials: KIT maintains a ‘A’ MSCI ESG rating and is committed to net zero by 2050, reinforcing its positioning as a responsible, future-ready investment platform.

Conclusion: KIT’s Digital Pivot—A Potential Catalyst for Share Price Appreciation

Keppel Infrastructure Trust’s proposed acquisition of Global Marine Group is a transformative step that could set the stage for a re-rating of the Trust. With compelling industry tailwinds, robust financial metrics, and a clear strategy for portfolio diversification, KIT is well-positioned to capture the next wave of infrastructure growth. Shareholders should watch closely as the EGM approaches, as approval of the deal could materially impact the Trust’s value proposition and share performance in the months ahead.

Disclaimer: This article is for informational purposes only and does not constitute investment advice or a solicitation to buy or sell any securities. Investors should refer to official KIT disclosures and seek independent financial advice before making investment decisions. The views expressed herein are based on publicly available information at the time of writing and are subject to change without notice.

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