Keppel Infrastructure Trust - OCBC Investment Research 2025-04-01: Under The Sea

• Keppel Infrastructure Trust has announced the proposed acquisition of a 46.7% stake in Global Marine Group (GMG) from Keppel (SGX:BN4)’s flagship infrastructure fund, Keppel Infrastructure Fund (KIF). The aggregate investment is expected to be US$90.6m (S$122.3m), comprising a subscription consideration of US$86.6m (S$116.9m) and a ticking fee of US$3.9m (S$5.3m).

To be funded using internal sources of fund and/or external borrowings

• - Read this at SGinvestors.io -
• - Read this at SGinvestors.io -

Headquartered in the UK, GMG is one of the world’s largest independent subsea cable solutions providers

• Global Marine Group (GMG) maintains 450,000km (~31%) of global maintained subsea cable length and has installed 320,000km (approximately one-fifth) of global cumulative installed subsea cable length.
• A substantial portion of its business (80% of FY24 revenue) is secured by long-term maintenance zone and charter contracts with customers like telcos and hyperscalers.
• Embedded in these contracts are inflation adjustments and pass-through clauses for related operational costs. High barriers to entry and an entrenched customer base should provide GMG with a sustainable competitive advantage.

Strong alignment with Keppel Infra Trust’s investment strategy.

• Read more at SGinvestors.io.

Ada Lim OCBC Investment Research | https://www.iocbc.com/ 2025-04-01

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