More Divestments: Fifth Fibre Cable Pair

Research evidence excerpt

More Divestments: Fifth Fibre Cable Pair

Update

July 14, 2026 12:00 AM GMT

Morgan Stanley Asia (Singapore) Pte.+MKeppel Ltd | Asia Pacific Mayank Maheshwari

Equity Analyst

More Divestments: Fifth Fibre Mayank.Maheshwari@morganstanley.comRyan M Heng +65 6834-6719

Ryan.Heng@morganstanley.com +65 6834-6465

Cable Pair Vivek Rajamani

Vivek.Rajamani@morganstanley.com +65 6834-6740

Keppel has sold its fifth fibre pair on the Bifrost Cable System. The contract value of

Morgan Stanley India Company Private Limited+

all five fibre pairs totals S$1.7bn, which includes maintenance operations over 25

Pranitha Shetty

years. We estimate S$180-200mn in recurring revenues from maintenance across Research Associate

the fiber cables. Keppel owns a 40% stake in the venture along with its private Pranitha.Shetty@morganstanley.com +91 22 6118-3022

Hinal Choudharyfunds and estimates 30% IRR on this investment.

Research Associate

Hinal.Choudhary@morganstanley.com +91 22 6118-2044

We are OW on Keppel and view its asset monetisation strategy positively while

remaining constructive on its exposure to rigs, decarbonisation projects, AI-driven

infrastructure demand, and higher power spreads in Singapore. As energy security

takes center stage, we see opportunities for Keppel to redeploy capital in its energy

and infrastructure vertical – which earns the highest returns – while financing this

via its private funds. See more details in Energy Meets Compute: Supercycle Keppel Ltd (KPLM.SI, KEP SP)

Recharges. ASEAN Energy and Materials | Singapore

Stock Rating Overweight

Exhibit 1: Keppel : Monetisation continues despite recent hiccups Industry View Attractive

Price target S$16.00

Asset Sale Potential by 2027e S$ million Potential Benchmarks being used Up/downside to price target (%) 38