US private equity firm KKR invests US$400m in Malaysia’s OMS Group
30 Oct 2023
US private equity firm KKR is investing US$400 million (RM1.9 billion) in Malaysian telecommunications infrastructure and subsea service provider OMS Group.
In a joint statement issued today, KKR and OMS announced the signing of definitive agreements under which KKR will commit US$400 million in a tailored solution for OMS Group.
Founded in 1988, OMS Group is a neutral provider of integrated solutions for subsea telecom cable services, including installation and maintenance projects. OMS has a track record of more than three decades of providing mission-critical services to clients, including major subsea equipment providers, large-scale cloud service providers, and telecom companies, and is internationally accredited for its quality management system.
OMS Group is one of the largest independent operators in this sector, with a diverse fleet including cable ships and cable barges, as well as cable landing stations serving the global telecommunications market.
KKR’s investment positions OMS Group will be used to accelerate its growth, including through expanding its fleet size and capabilities and investing in cable landing stations and subsea cable routes to serve global fast growing cross-border data transmission trends and the demand for com-prehensive subsea cable services.
KKR Infrastructure director Projesh Banerjea said, “OMS Group has established itself as a market leader with a longstanding track record of success and growth in Southeast Asia. Our tailored solution for OMS Group also creates strong adjacencies with KKR’s recent digital infrastructure investments and builds on long-term secular tailwinds in the region, including increased data consumption, enterprise cloud needs, a focus on digitalisation by governments, and a booming digital economy.”
Commenting on KKR’s investment, OMS Group CEO Ronnie Lim said, “KKR’s investment in OMS Group underscores the value of OMS Group’s capabilities, which provides immense economic value to communities, corporations, and countries around the world by constructing and maintaining critical subsea data infrastructure.
“Together with KKR’s strong track record in supporting and investing in data infrastructure assets and its platform-building expertise, OMS Group is in a stronger position to support its clients to build and maintain greater global connectivity.”
The transaction is expected to be completed by the first quarter of next year.
Source: The Sun Daily