(July 29): In April, when Keppel Corp announced its 1QFY2019 results, its group CEO Loh Chin Hua revealed some statistics on its wholly-owned property subsidiary, Keppel Land. “At the end of 2018, we calculated the [revalued net asset value] of Keppel Land to be about $10.3 billion, or $5.68 for each share of Keppel Corp. This does not include the Keppel Group’s 45% stake in Sino-Singapore Tianjin Eco-City Investment and Development Co, which has an RNAV of about $1.2 billion, or $0.66 for each share of Keppel Corp,” Loh said. That works out to $6.34, just 20 cents below Keppel Corp’s last trading price of $6.54.
The RNAV of Keppel Corp’s property units clearly does not include its other businesses such as Keppel O&M, Keppel Infrastructure (and Keppel Infrastructure Trust, or KIT), the recently privatised Keppel T&T and its real estate investment trust, Keppel DC REIT, and Keppel Capital and its REITs and Alpha Investment Partners funds. Of course, Keppel Corp also owns significant stakes in troubled entities such as KrisEnergy, an oil exploration company, and Dyna-Mac Holdings, which builds topsides for rigs.