Keppel Ltd. on Jul, 27 2026 announced that its indirect wholly owned subsidiary Rigco Holding Pte. Ltd. has signed a share purchase agreement to sell 100 per cent of six special-purpose vehicles (SPVs) that each own an operational oil rig to Keppel Offshore Fund Investment Pte. Ltd., the holding company of the newly established Keppel Offshore Fund, for a total consideration of about US$957 million (approximately 1.221 billion Singapore dollars).

Under the terms, Keppel will inject its 50 per cent share of the consideration by contributing the SPV shares in kind, while an Apollo Management Singapore-affiliated limited partner will provide a matching cash contribution of about US$478 million (approximately 611 million Singapore dollars). Keppel will receive cash proceeds equivalent to the Apollo contribution, which it intends to deploy for general corporate purposes.

The transaction, classified as a “disclosable transaction” under SGX Listing Rule 1010, is expected to result in a pro-forma reduction of Keppel’s net tangible asset per share by 0.9 per cent and a 10.6 per cent decrease in FY2025 earnings per share. Keppel estimates a disposal loss of roughly 92 million Singapore dollars due to fair-value adjustments.

Completion is conditional on regulatory and third-party approvals, accuracy of fundamental warranties, absence of material adverse changes and other customary conditions, with a long-stop date of Apr, 27 2027. Up to 5 per cent of the purchase price may be deferred, depending on the leasing status of the rigs.

The parties also envisage potential future sales of up to four additional rigs currently under construction, subject to separate agreements and conditions. Post-transaction, Keppel will continue to control Rigco and, through Keppel Fund Management Limited, earn management and advisory fees from the newly formed fund.