Brokers' Call: Keppel consolidates asset management businesses


Broker: OCBC

Call: Hold

Fair Value: $4.38

Keppel Corporation announced on Monday morning (Jan 25) that it plans to consolidate its interests in four asset management businesses under a wholly owned subsidiary, Keppel Capital Holdings.

The consolidation will include the managers of Keppel Infrastructure Trust, Keppel DC Reit, Keppel Reit and Alpha Investment Partners.

There will also be centralisation of certain non-regulated support functions such as legal and compliance, IT and accounting support.

After the consolidation, which is estimated to conclude by the second half of this year, Keppel may consider increasing the scope of support functions to include regulated activities relating to investments and asset management.

This development is positive as it helps to strengthen the group's capital platform for co-investing, without relying solely on its balance sheet.

However, headwinds from the offshore and marine industry remain strong.