Keppel Infrastructure Fund (KIF) and its co-investor have acquired a 100% stake in subsea cable solutions provider Global Marine Group (GMG) from investment affiliates of J.F. Lehman & Company, marking the fund’s first investment.
The UK-headquartered GMG operates a fleet of six vessels and offers consultancy, installation and maintenance services covering the lifespan of a submarine cable system.
The group consists of two business units, with Global Marine providing fiber optic cable installation and maintenance solutions to the telecommunications and oil & gas markets, and OceanIQ providing subsea cable data, survey, route engineering, permitting and consultancy services for telecom and power cable projects.
According to Singapore’s asset manager and operator Keppel , the investment bolsters its growth ambitions in the subsea cable business and role as a strategic connectivity ecosystem partner.
“We are excited to complete this investment in GMG. It is a rare and unique opportunity to acquire a world-leading provider of subsea cable maintenance and installation services,” said Christina Tan , CEO of Fund Management and Chief Investment Officer of Keppel Ltd.
“This investment builds on Keppel’s digital infrastructure strategy which includes the Bifrost Cable System, and now, GMG. With a substantial proportion of GMG’s business secured by long-term contracts with huge growth potential, especially in Asia, we are poised to deliver attractive risk-adjusted returns to our investors.”
The acquisition is not expected to have any material impact on the net tangible assets per share or earnings per share of Keppel for the current financial year.
The company noted it would continue evaluating quality deals and platforms beyond Asia, should such opportunities arise.