Singapore’s Keppel Ltd is accelerating its shift toward digital infrastructure and ICT services, combining regional expansion with strategic divestment in traditional telecom. Through its AsiaPac ICT arm, the company is targeting Southeast Asian markets such as Malaysia and Vietnam via acquisitions, leveraging Vietnam’s skilled software workforce for front-end development while distributing back-end network operations across the region. This strategy positions Keppel to meet rising demand for cloud, AI, and 5G enterprise solutions.
At the same time, Keppel is selling its 83.9% stake in M1’s telecom operations to Simba Telecom for an enterprise value of about SGD 1.43 billion (USD 1.11 billion), generating net proceeds of around SGD 1 billion (USD 778 million). While the deal is expected to incur an accounting loss of approximately SGD 222 million (USD 173 million), it aligns with Keppel’s goal to become more asset-light and free up capital for higher-growth ICT ventures.
Importantly, Keppel is retaining M1’s non-telecom ICT assets, including data centers, subsea cable networks, and other digital infrastructure. This enables the company to continue expanding in fast-growing, high-demand sectors while exiting the more capital-intensive telecom business. The divestment proceeds are expected to reduce debt and strengthen its balance sheet for future investments.
These moves reflect Keppel’s strategic pivot toward digital infrastructure and enterprise ICT, using regional acquisitions to expand market reach while streamlining operations. By focusing on next-generation digital services, the company aims to capture growth opportunities in Southeast Asia and solidify its position as a leading provider of enterprise ICT solutions.
(Sources: Reuters, Fierce Network)
