Malaysian digital infrastructure company wins cable vessel contract

OMS Group, a Malaysian subsea digital infrastructure company, has signed a contract with Dutch maritime firm Royal IHC for the construction of a series of cable-laying vessels. OMS is backed by KKR, a global investment firm investing across private markets in every asset class all over the world.

It will come as no surprise, given the continuing strength of the cable market, that OMS has suggested that the new vessels will help it meet the surge in telecoms demand and ramp up global connectivity.

Timings, financial details and the total number of vessels to be constructed in the deal have not yet been revealed. However, the first vessel is expected to be delivered in the first quarter of 2027.

In 2023 OMS Group announced that it had set aside US$300 million for investments to expand its submarine cable systems and terrestrial infrastructure. This allocation of capital followed KKR’s investment in OMS Group in 2023.

Reuters reports that KKR invested US$400 million in OMS Group in October last year as part of its expansion in the digital infrastructure space in Southeast Asia. OMS is a portfolio company of KKR, according to the US-based investment firm's website.

Reuters adds that in June this year OMS said it secured US$292.5 million worth of loans from a group of financial institutions including HSBC, E-Sun Commercial Bank and SinoPac.

The financial boost to its operations over the past year means OMS Group will be able to develop its network further and provide businesses and organisations with essential connectivity infrastructure. Indeed, by expanding its submarine cable systems and terrestrial infrastructure it aims to enhance connectivity between critical regions and support the increasing adoption of digital technologies.