Finance
Last Monday, Apollo Global Management announced that it would be investing $1.5 billion in a new private fund managed by Singapore-based Keppel.
The fund will hold six operational oil rigs.
The deal will help Keppel monetise its non-core assets and unlock capital for reinvestment, while enabling Apollo to access the region’s offshore energy market, which boasts high utilisation rates and positive long-term demand trends.
The transaction forms part of Keppel’s plans to divest ten oil rigs, held by its indirect subsidiary Rigco Holding Pte, for nearly S$3.7 billion (US$2.87 billion), to free up funds for new investments, reduce debt, and reward shareholders.
Keppel expects to receive $478 million in cash this year through the divestment of six rigs to the new Keppel Offshore Fund for S$1.2 billion. The Singapore-based fund manager will contribute 50% to the new private fund through an indirect unit.
The divestment of the six rigs is expected to add around S$3.9 billion to Keppel’s funds under management.
