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Keppel Corp announces $500 mil share buyback

·2-min read

The $500 million programme could take more than a year to be completed, says Keppel.

Keppel Corporation Limited (Keppel) has established a $500 million share buyback programme, pursuant to the share purchase mandate granted by its shareholders at the company’s annual general meeting (AGM).

Keppel’s share purchase mandate, as approved by shareholders at the last AGM in April 2021, allows the purchase of up to a maximum of 2% of its issued shares for the duration of the mandate.

The $500 million programme could take more than a year to be completed, says Keppel in a Jan 27 press release.

As part of Keppel’s Vision 2030 plans, the company has announced about $2.9 billion in asset monetisation since 4QFY2020. Of the amount, it has received about $2.7 billion in cash. According to Keppel Corporation, the company is on track to exceed its $5 billion asset monetisation target by the end of 2023.

“The substantial capital unlocked from the asset monetisation programme would allow the company to fuel its organic and inorganic growth plans, especially in areas such as renewables, clean energy and decarbonisation solutions, and also reward shareholders for their continued confidence in the company through dividends,” says Keppel.

With the asset monetisation, Keppel’s net gearing has decreased from 0.91 times as at end-December 2020 to 0.68 times as at end-December 2021.

Shares repurchased under the share buyback programme will be held as treasury shares which will be used in part for the annual vesting of employee share plans, and also as possible currency for future merger and acquisition (M&A) activities under Vision 2030.

Shares in Keppel Corp closed 6 cents lower, or 1.12% down, at $5.29 on Jan 27.

Photo: Keppel

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