According to sources familiar with the matter, global investment firm KKR & Co. is on the verge of finalizing a deal to inject approximately $400 million into Malaysia's OMS Group Sdn, a prominent sub-sea cable company. This move is anticipated to mark a significant milestone in the ever-evolving digital infrastructure landscape in Asia.
The private equity giant based in the United States is currently in advanced negotiations to acquire a substantial stake in OMS, valuing the company at roughly $1 billion as part of the transaction. The infusion of fresh capital is poised to catalyze OMS's strategic expansion initiatives, potentially leading to a comprehensive agreement in the near future. Those familiar with the matter, who requested anonymity due to the confidentiality of the discussions, disclosed these details.
OMS specializes in the installation of undersea cables for leading technology and telecommunications enterprises, operating across Malaysia, Singapore, and Indonesia, as indicated on its official website.
While negotiations continue, there remains a possibility of delays or a breakdown in discussions, and specific terms of the deal have yet to be finalized, as per the sources. Representatives for both KKR and OMS declined to provide immediate comments when approached for clarification.
The growing trend of digitization across the Asian region has piqued the interest of global investors, leading to a surge in investments within data centers, phone towers, fiber optics, and submarine cables. Recent developments have seen a heightened focus on such infrastructure assets, exemplified by the Philippines-based PLDT Inc.'s sale of a telecommunications tower portfolio to a KKR-backed firm earlier this year, among other noteworthy transactions. In addition, industry players such as ST Telemedia Global Data Centres and China's GDS Holdings Ltd. are actively seeking partnerships with global investors, reported Bloomberg News.
OMS boasts an impressive track record, having undertaken numerous sub-sea cable installation and maintenance projects over the past three decades, including notable ventures such as the Papua New Guinea National Submarine Fiber Cable Network and the South-East Japan Asia Japan Cable System 2, as highlighted on its website. The company's fleet includes the Cable Vigilance, a specialized vessel dedicated to cable-laying and repair operations.
Previously, there were reports that OMS was considering a potential listing in Kuala Lumpur, with plans to raise up to $300 million, as disclosed by Bloomberg News last year.
Disclaimer: The information provided in this article is based on publicly available data and should not be construed as investment advice or recommendations. Readers are advised to conduct their own research and consult with financial advisors before making any investment decisions.