SINGAPORE – Singapore conglomerate Keppel Corp will explore and invest in new businesses such as senior living and renewable energy infrastructure as part of its growth strategy, said chief executive Loh Chin Hua.
It will also deepen its venture into business-to-consumer businesses including electricity retail and urban logistics.
Mr Loh’s comments were published in Keppel’s annual report for 2018 which was released on Monday (April 1).
He said in the report: “Our long-term goal is to have each key division contribute no more than 40 per cent of the group’s annual net profit, moderating our exposure to… risks.”
Its businesses include Keppel Offshore & Marine, Keppel Land and Keppel Infrastructure, among other ventures.
Mr Loh said that Keppel’s recent purchase of telco M1 is an important step to grow its business.
M1’s connectivity solutions will power Keppel’s other businesses such as data centres and urban solutions. The telco will also complement Keppel’s growing business-to-consumer ventures, he added.
Konnectivity, a company owned jointly by Keppel Corp and Singapore Press Holdings, owns 94.55 per cent of M1, according to a Singapore Exchange filing in March.
Konnectivity will buy all the remaining M1 shares at $2.06 each from this month. The telco is expected to be delisted following the bourse operator’s approval.
Mr Loh said Keppel is “simplifying our corporate structure”, given the privatisation of Keppel Land, Keppel Capital’s restructuring of its asset management business and the proposed scheme to privatise Keppel Telecommunications & Transportation.
“This gives us better control of the group’s key business verticals, and the flexibility to allocate capital more efficiently towards investments with the best risk-adjusted returns,” he noted.
Mr Loh said Keppel has gone through “significant business transformation in the past five years” and “the key pieces of our transformation have been put in place”.
“We are now focused on executing and delivering on the growth initiatives, the results of which will come through in the next few years.”