At its 1QFY2023 ended March business update call on April 20, Keppel says the divestment is ahead of schedule and a new interim target will be announced next month. “We expect to exceed the upper bound of the $3 billion–$5 billion range within the year, and will announce a new interim monetisation target shortly, with the final goal of reaching the full $17.5 billion announced earlier,” says Loh during the call.
It is full speed ahead for Keppel Corp’s (SGX:BN4
) transformation into an asset-light model and given how the share price has led gains among the STI component stocks year to date, it is clear CEO Loh Chin Hua has received the thumbs-up.
As part of this asset-light strategy, Keppel has set a target of divesting some $17.5 billion worth of assets and reinvesting the funds into building asset management platforms so that it can generate a bigger stream of recurring income and become less reliant on lumpy project earnings.
