Keppel Infrastructure Holdings Pte Ltd (KI), through its wholly-owned subsidiary, has signed an agreement for the sale of its entire stake in Keppel FMO (KFMO) to Cofely GDF SUEZ for a cash consideration of S$44.72 million, subject to a post-closing adjustment for working capital and a deferred consideration amount of up to S$9.72 million.
KFMO provides integrated facilities management services for clients across various industries and business segments in both the public and private sectors. The purchaser, Cofely South East Asia Pte. Ltd. is a subsidiary of the GDF SUEZ Group. Cofely GDF SUEZ is one of Europe's leading facilities managers, involved in the design, implementation and delivery of integrated facilities management solutions.
Ms Cindy Lim, General Manager (Infrastructure Services) of Keppel Infrastructure said, "We are proud to have grown KFMO since the 1980s into one of Singapore's leading facilities management companies. With this transaction, we are passing the baton to Cofely GDF SUEZ. We believe that with Cofely GDF SUEZ's global facilities management know-how, KFMO and its employees can achieve the next level of growth."
While the shareholding changes hands, it will be "business as usual" for KFMO's clients, management team as well as employees.
Speaking on the transaction, Mr Yeo Kong Nee, General Manager of KFMO, said, "I would like to extend our sincere appreciation for the support given by the Keppel Group over the years in growing KFMO's business and nurturing its employees. This transaction marks the beginning of a new chapter for our organization and we are excited to be joining Cofely GDF SUEZ. Our focus during this transition period is our customers, and we will ensure that operations and service delivery remain seamless."
KI is a wholly-owned subsidiary of Keppel Corporation Limited.
The above mentioned contract is not expected to have any material impact on the net tangible assets or earnings per share of Keppel Corporation for the current financial year.