Keppel Ltd. Announces Major Acquisitions, Divestments, and Subsidiary Incorporations for 2H 2025

Keppel Ltd. (SGX: BN4) has released a comprehensive update on its corporate activities for the period from 1 July 2025 to 31 December 2025, featuring a series of strategic acquisitions, divestments, and subsidiary incorporations. These developments are significant and could have material implications for shareholders and the company’s share value. Here’s a detailed breakdown of the key points and their potential impact:

1. Incorporation of New Subsidiaries

• Keppel Decarb (Malaysia) Sdn. Bhd.: Incorporated in Malaysia with an initial capital of RM 1, this subsidiary will focus on decarbonization and sustainability solutions for Malaysian projects.
• Keppel Seghers France S.A.: Incorporated in France (EUR 50 capital) for engineering activities.
• Keppel DC1 (Australia) Pty Ltd & Keppel DC2 (Australia) Pty Ltd: Both incorporated in Australia (AUD 100 capital each) for project management, consultancy, and investment holding.
• KEAF Einstein Fund (GP) Pte. Ltd: Incorporated in Singapore (USD 1 capital) to act as general partner of a Singapore limited partnership.

Investor Note: The continued global expansion and focus on decarbonization and digital infrastructure indicate Keppel’s strategic pivot towards sustainable and future-oriented businesses.

2. Significant Acquisitions

• Keppel REIT Management Acquisitions:
  • 8 August 2025: Acquired 9,734,226 units in Keppel REIT at S\$0.8797 each as management fee, increasing Keppel’s stake from 38.061% to 38.216%.
  • 30 October 2025: Acquired 8,693,027 units at S\$0.9981, raising stake to 37.256% (1,495,398,074 units).

  Potential Impact: Increased ownership in Keppel REIT strengthens recurring income streams and control over key assets, potentially boosting earnings and dividend visibility.

• Keppel DC REIT Management Acquisitions:
  • 14 August 2025: Acquired 726,097 units at S\$2.3057 as management fees, increasing stake to 19.078%.
  • 22 October 2025: Acquired 1,991,563 units via preferential offering at S\$2.24 and 32,456,746 units through a wholly-owned subsidiary, maintaining 19.078% interest.
  • 5 November 2025: Acquired 703,470 units at S\$2.3744 as management fees, raising stake to 19.102%.
  • 23 December 2025: Acquired 2,435,983 units at S\$2.3834 as acquisition fee for Tokyo Data Centre 3, increasing stake to 19.182%.

  Potential Impact: Sustained or increased stake in Keppel DC REIT reinforces Keppel’s position in the high-growth data centre sector, with visible fee income and capital appreciation.

• Acquisition of Silverio Developers Private Limited (SDPL):
  • 22 August 2025: Through subsidiary PKT, acquired 100% of SDPL (owner of “TenSteps”, a 1.1 million sq ft Grade A office in Pune, India) for INR 2,867 million (S\$42.4 million). Enterprise value: INR 9,017 million (S\$133.5 million).

  Potential Impact: Expansion into India’s commercial real estate market could provide new revenue streams and geographic diversification.

• Acquisition of iseek-KDC Services Pty Ltd:
  • 28 November 2025: Acquired remaining 40% from iseek Pty Ltd for AUD 200,000 (S\$170,000). NAV of shares: AUD 248,000 (S\$210,000).

  Potential Impact: Full ownership of iseek-KDC allows greater operational flexibility in the Australian data centre market.

• Acquisition of Cleantech Renewable Assets Pte Ltd (CRA):
  • 4 November 2025: Subsidiary Cloud Alpha Pte Ltd acquired remaining 49% shareholding from Shell Singapore for US\$60 million. NAV of 49% stake: US\$89.5 million.

  Potential Impact: CRA becomes a full subsidiary, strengthening Keppel’s renewable energy portfolio, which is in line with sustainability trends and may attract ESG-focused investors.

3. Major Divestments and Changes in Shareholding

• Divestment of 70% Stake in Saigon Sports City Limited (SSCL):
  • 23 September 2025: Sold 35% each to HTV Dai Phuoc Co. Ltd. and Vinobly Investment Real Estate JSC for VND2,590.3 billion (S\$128.5 million) per stake. SSCL develops a 64-hectare township in Ho Chi Minh City. Keppel’s stake reduced to 30%.

  Potential Impact: Unlocks significant capital, sharpens focus on core assets, and provides liquidity for reinvestment.

• Divestment of 100% in Chennai Business Tower Private Limited (CBTPL):
  • 24 September 2025: Sold to Porur Infra Estates for INR 12,049 million (S\$175 million). CBTPL owns “One Paramount”, a 2.4 million sq ft Grade A office in Chennai, India.

  Potential Impact: Monetizes a mature asset, improving cash position and possibly enabling redeployment into higher growth areas.

• Disposal of Remaining Interests in Two Data Centres (82 Genting Lane, Singapore):
  • 3 September 2025: Sold 51% in Memphis 1 Pte. Ltd. and 0.51% in related notes to Perpetual (Asia) Limited for up to S\$8.4 million (adjusted NAV: S\$5.3 million).

  Potential Impact: Reflects ongoing capital recycling strategy and realization of asset value.

• Change in Keppel REIT Interest:
  • 31 July 2025: Small decrease due to transfer of 35,900 units as part payment of director’s fees, minimal impact on overall stake.

4. Key Takeaways for Investors

• Active portfolio management: Keppel is actively recycling capital from mature or non-core assets into higher growth and future-ready sectors such as renewables, data centres, and international real estate.
• Strengthening recurring income: Increased stakes in REITs and data centre assets are likely to enhance recurring management fee income and stable distributions.
• Sustainability and decarbonization: New subsidiaries and acquisitions in clean energy and decarbonization are aligned with global ESG investment trends and could attract new pools of capital.
• Potential for share price movement: The scale and scope of these transactions—especially the large divestments and acquisitions in renewable energy and data centres—are material and could influence Keppel’s valuation and investor sentiment.

Disclaimer

This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own due diligence and consult their financial advisors before making any investment decisions. The author and publisher make no representations or warranties regarding the accuracy or completeness of the information contained herein.

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