Keppel plans shareholder rewards from monetisation, including MI

Global asset manager and operator Keppel said in its third-quarter business update that it intends to reward shareholders with part of the cash unlocked from ongoing asset monetisation efforts.

- Tay Hong Yi

However, chief executive Loh Chin Hua stopped short of confirming whether this reward would come in the form of a special dividend, in a call with analysts and the media on Oct 30.

He also said the company is committed to paying sustainable and growing dividends, anchored to the earnings of its core businesses, or what the company terms as “New Keppel”.

Keppel shares ended the trading day 1.6 per cent higher at $10.05, a new record.

New Keppel excludes mainly legacy offshore and marine assets, its residential land bank, selected property developments and investment properties, hospitality and logistics assets, associated cash and receivables and other non-core investments.

It also excludes MI's telecommunications business, which has been recorded as discontinued operations pending Keppel’s sale of the business to Simba, which is awaiting regulatory approval but is said to remain on track to be completed by end-2025.

Keppel reiterated on Oct 30 it does not expect the outcome of legal proceedings on Liberty Wireless’ mobile virtual network arrangements with M1 to adversely affect or delay sale completion. Liberty Wireless is the parent company of Circles.Life.

Net profit for New Keppel, which excludes its non-core portfolio for divestment and discontinued operations, rose by more than 25 per cent year on year for the nine months ended Sept 30.