Keppel Corporation to Acquire Voting Shares of Aermont Capital

Keppel Corporation of Singapore announced on November 29 that its subsidiary Keppel Capital Holdings will acquire all issued voting shares in European asset manager Aermont Capital in two tranches for a maximum of S$1.35 billion (US$1 billion).

According to a stock exchange filing, Keppel Capital will purchase a 50% stake in Aermont for a maximum of €356.9 million (US$391.6 million) in the first half of 2024, and the remaining stake for €575 million in the first half of 2028.

"The acquisition of an initial 50 per cent stake in Aermont, with a pathway to an eventual 100 per cent ownership and full integration, marks a major strategic step forward in Keppel's ambition to be a global asset manager and operator," Keppel's chief executive officer Loh Chin Hua said in a separate statement.

According to the filing, the acquisition will help Keppel gain a foothold in Europe and expand beyond Asia Pacific.

Keppel, which began as a small ship repair yard in 1968, announced in May that it intends to become an asset manager overseeing US$150 billion by 2030, with a focus on green energy.

The business shift will see it operate more like Brookfield Asset Management in Canada and Macquarie Group in Australia.

According to the filing, the deal announced on Wednesday will add an initial S$24 billion to Keppel's funds under management of approximately S$53 billion, representing significant progress towards the company's target of S$100 billion by 2026.

The acquisition is also expected to be immediately earnings accretive to Keppel upon completion and increase its recurring income, according to a separate statement from the company.

According to the filing, Keppel, which is backed by Singapore's state investment firm Temasek Holdings, will finance the acquisition through a variety of means, including unutilized banking facilities and internal cash resources, as well as an issue and or transfer of shares.

Aermont, which was founded in 2007, manages funds totaling S$24 billion and invests in assets and businesses in the office, student housing, workforce housing, luxury hospitality, and production studio infrastructure sectors.