Keppel fund to invest in subsea cable provider Global Marine Group

Keppel's private infrastructure fund, Keppel Infrastructure Fund (KIF), and Keppel Infrastructure Fund Management (KIFM), the trustee-manager of Keppel Infrastructure Trust (KIT), have, through indirect subsidiaries, entered into a share subscription agreement for KIT’s proposed subscription of a 46.7 per cent equity stake in Global Marine Group (GMG).

KIT will be entering the deal at the same valuation as KIF, and KIT’s aggregate investment is expected to be US$90.6 million.

GMG is one of the world’s largest independent subsea cable solutions providers, maintaining approximately 31 per cent of global maintained cable by length. Post transaction, KIF and its co-investor will hold the remaining 53.3 per cent equity stake in GMG.

“Our investment in GMG marked a rare and unique opportunity to acquire a world-leading provider of subsea cable maintenance and installation services with strong recurring cash flows," said Jopy Chiang, Keppel’s Deputy Chief Investment Officer and Chief Investment Officer, Infrastructure.

"We also saw an opportunity for GMG’s complementary expertise to synergise and create value for Keppel’s wider connectivity ecosystem, including our subsea cable and data centre projects.

“KIF was able to act swiftly in the initial stages to secure 100 per cent ownership of GMG, while incubating a stake in the platform for KIT. By hunting as a pack, we are not only able to deliver strong returns to our limited partners but also offer KIT unitholders access to the fast-growing digital infrastructure space through this accretive investment.”

Headquartered in the UK, GMG operates a fleet of six vessels providing maintenance and installation services for the global subsea fibre optic cable network.