KKR, a leading global investment firm, has announced an ambitious plan to invest US$ 400 Million into OMS Group, a leading telecom infrastructure company and provider of subsea cable services. KKR is the and the parent company of OMS Group, and this infusion marks KKR’s latest digital infrastructure investment in Southeast Asia.
SEA’s Subsea Cable System
This region has one of the most complex and dense subsea cable systems in the world, and this has enabled the growth of the data center industry in Singapore, Malaysia, Philippines, Vietnam, etc. According to the Maritime Institute of Malaysia, “These cables are especially important in Southeast Asia which hosts many emerging economies with surging bandwidth demand.” It also cautioned, “Maritime activities like fishing, anchoring, and sand dredging pose great threats to submarine cables, particularly in Southeast Asia’s busy chokepoints.”
KKR’s Strategic Investment
According to a statement issued, “KKR’s investment positions OMS Group well 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 comprehensive subsea cable services.”
The OMS Group was founded in 1988, and today, it is one of the largest independent operators in this sector. It has a diverse fleet including cable ships and cable barges, as well as cable landing stations serving the global telecommunications market.
The statement also shed light on KKR’s series of strategic investments in the region. It said, “Past KKR investments in Southeast Asia digital infrastructure have included the regional data center platform of Singtel, a leading Asian communications technology group headquartered in Singapore, and Pinnacle Towers, a digital infrastructure platform in Asia with a strong focus on the Philippines.”
Projesh Banerjea, Director, Infrastructure at KKR, said, “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 digitalization by governments, and a booming digital economy. We look forward to sharing our global network and infrastructure expertise to take OMS Group to its next stage of growth.”
Datuk Soon Foo Lim, OMS Group’s Chairman, said, “OMS Group and KKR share the same vision and appreciation of the critical data infrastructure OMS Group builds and maintain for its clients.”
Ronnie Lim, Group CEO, OMS Group, 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 Q1 of 2024, subject to customary closing conditions.
