Keppel Ltd. (Keppel) is unlocking over $80 million from the divestment of its stakes in Computer Generated Solutions, Inc (CGS) and the Keppel Wanjiang International Coldchain Logistics Park (Anhui) Co., Ltd (Wanjiang Logistics Park) in Anhui Province, China.
This follows the establishment of an Accelerating Monetisation Task Force (AMTF) earlier this year to optimise the speed of divestment and exit value of Keppel’s non-core assets in line with its $10 billion - $12 billion monetisation target by end-2026.
The divestments involve a 20.5% stake that Keppel held in CGS, a firm based in New York City, US, providing business process outsourcing, enterprise resource planning software and e-learning services; as well as Keppel’s 75.8% stake in Wanjiang Logistics Park, which was established as an integrated agricultural logistics park in Lu’an City, Anhui Province. The divestment of CGS has been completed and the divestment of Wanjiang Logistics Park is expected to be completed in the second half of 2025.
Since embarking on its $17.5 billion asset monetisation programme in October 2020, Keppel has announced over $7.3 billion in monetisation to date, including the latest transactions. In addition, Keppel is currently in advanced stages of negotiating another $550 million in real estate transactions.
The monetisation of non-core assets, together with Keppel’s growing recurring income, will put the company in a good position to continue rewarding shareholders well, whether through dividends, distributions in-specie or share buybacks.
Keppel shares closed at $6.97 on June 5, up 2.05%.
