Keppel Corporation - CGS-CIMB Research 2023-11-29: Making Headway Into Europe

Keppel Corporation - Making Headway Into Europe

Keppel Corp (SGX:BN4) | SGinvestors.ioKeppel Corp (SGX:BN4)
  • Keppel announced the proposed acquisition of Aermont Capital (Aermont), a European real estate asset manager. Aermont has S$24bn of total funds under management (FUM) as at end-Jun 2023, and focuses on real estate investments in Western Europe.

Two phases of transaction to complete by 1H24 and 2028

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  • phase 2 would commence and it would acquire the remaining 50% in 2028F for ~S$834m.
  • In both phases, the consideration will be funded via a mix of cash and treasury shares. Keppel expects the transaction to be immediately accretive upon the close of phase 1.
  • Accelerating FUM growth and growing its foothold in Europe

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    • Keppel also sees value in growing its real estate footprint in Europe, where the group currently only has renewable and data centre assets.
    • Management sees minimal overlap in capabilities between Keppel and Aermont, and highlighted the possibility of expanding Aermont’s investment outreach to Asia over the longer-term.

    Valuation seems fair, with longer-term benefits for Keppel

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    Above is the excerpt from research report by CGS-CIMB.
    Clients of CGS-CIMB may access the full report in PDF @

    LIM Siew Khee CGS-CIMB Research | Kenneth TAN CGS-CIMB Research | 2023-11-29

    Read also CGS-CIMB's most recent report:
    2024-02-01 Keppel - Infrastructure Powering Recurring Income.

    Price targets by other brokers at Keppel Corp Target Prices.

    Listing of research reports at Keppel Corp Analyst Reports.

    Relevant links:
    Keppel Corp Share Price History,
    Keppel Corp Announcements,
    Keppel Corp Dividends & Corporate Actions,
    Keppel Corp News Articles


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