[SINGAPORE] Keppel Infrastructure Trust (KIT) will be acquiring about 46.7 per cent stake in Global Marine Group (GMG), a leading subsea cable solutions provider for about US$90.6 million, its manager announced on Tuesday (Apr 1).
The stake will be acquired from Keppel Infrastructure Fund (KIF), KIT’s trustee-manager, which previously held 100 per cent interest in GMG since acquiring it in early March 2025. Following the acquisition, the remaining 53.3 per cent interest will be held by KIF and its co-investor.
The total investment amount of US$90.6 million comprises a subscription consideration of about US$86.6 million, as well as a ticking fee of about US$3.9 million as part of a standard closing mechanism. The ticking fee is intended to compensate KIF for the time value and opportunity cost of their capital since its initial acquisition in early March.
The trust expects the acquisition to raise distribution per unit by an accretive 3.5 per cent on a pro forma basis from S$0.039 to S$0.0404. Net asset value per unit is not expected to change. Net gearing is expected to increase 3 per cent, from 40.4 per cent to 41.6 per cent on a pro forma basis.
GMG’s business provides mission-critical maintenance and installation services for subsea cable infrastructure. KIT expects to capitalise on Keppel’s operating capabilities in the connectivity space to unlock value for GMG.
For instance, Keppel’ recent efforts to develop the 20,000 km Bifrost Cable System, the first subsea cable connecting Singapore to the west coast of North America via Indonesia, showcases the company’s expertise in the sector, the manager said.
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Additionally, strong market fundamentals have driven global demand for subsea cable connectivity, with increasing data consumption and rapidly expanding cloud infrastructure and artificial intelligence adoption. Strong investments from global technology leaders and government-led digitalisation efforts have further driven demand for digital infrastructure capabilities, the manager said.
Kevin Neo, chief executive officer of Keppel Infrastructure Fund Management, said: “The proposed acquisition of a 46.7 per cent stake in GMG is in line with KIT’s strategy to tap growth opportunities in digital infrastructure which is underpinned by the secular growth trend of rising global digitalisation.”
The investment will be funded by a combination of internal sources of funds and external borrowings, said KIT’s manager.
GMG operates a fleet of six specialised vessels for its subsea cable infrastructure services, the manager said. Globally, only 54 of such specialised vessels are available within the sector, with significant capital investment necessary to enter the market. GMG maintains 31 per cent of global subsea cable length and has installed about 20 per cent of cumulative installed length.
Shares of KIT closed at S$0.425 on Friday, up 1.2 per cent.
