Keppel Corp should use private fund to buy up undervalued Keppel Reit

The move could endear Keppel Corp to investors and help it achieve its ambitious FUM growth targets

Leslie Yee

Published Wed, Aug 23, 2023 · 05:00 AM

HELPED by a S$3.3 billion disposal gain from divesting its offshore and marine business, Keppel Corporation : BN4 0% posted a record net profit for H1 2023 of over S$3.6 billion.

Keppel Corp paid its shareholders an interim cash dividend of S$0.15 per share on Aug 18. The group has also proposed paying a dividend in specie (DIS) of one Keppel Reit : K71U 0% (KReit) unit for every five Keppel Corp shares held.

Post the proposed distribution of 9.4 per cent of KReit, Keppel Corp will remain as KReit’s largest unitholder, with a stake of about 37.1 per cent. The trust is managed by a subsidiary of Keppel Corp’s asset management arm, Keppel Capital Holdings.