Singapore-based global asset manager Keppel’s infrastructure fund and an unnamed co-investor have acquired sub-sea cable company Global Marine Group (GMG) from investment affiliates of US-based PE firm J.F. Lehman & Company, according to a press release.
The deal marks the first investment by the fund.
Keppel Ltd CEO of Fund Management & CIO Christina Tan said GMG’s strong expertise aligns with Keppel’s strategy to be an ecosystem partner for digital connectivity and supports our growth ambitions in the subsea cable business.
UK-headquartered GMG is one of the world’s largest independent subsea cable solutions providers. It operates a fleet of six vessels providing mission-critical maintenance and installation services for the global subsea fibre optic cable network. Its customers include telcos, hyperscalers and global equipment suppliers.
The market for maintenance and installation services is estimated to grow at about 45% CAGR between 2023 and 2029, amid rising global demand for connectivity and the limited supply of specialised vessels, the release stated.
Keppel Infrastructure Fund, formerly known as Keppel Asia Infrastructure Fund II, is Keppel’s private investment vehicle that provides growth capital to businesses in the infrastructure space. The fund will focus on key sectoral themes including the energy transition, circular economy and digital sectors. It will continue to evaluate quality deals and platforms beyond Asia.
The acquisition is not expected to have any significant impact on the net tangible assets per share or earnings per share of Keppel for the current financial year, Keppel said in the release.
Keppel shares were trading flat at S$6.77 today.
