Keppel Corporation’s acquisition of Aermont Capital ‘checks all boxes’

Keppel Corp’s planned acquisition of Aermont Capital “checks all boxes” in the former’s bid to step up its transformation from a conglomerate into an asset manager.

In their Dec 5 note, Citi Research analysts Brandon Lee and Jame Osman, who have a “buy” call and $8 target price for Keppel, point out that Aermont has built up a track record of delivering both solid and consistent returns, as well as a high “re-up” rate - an indication of the management’s commitment.