| Latest Forum Topics / Kep Infra Tr Last:0.415 -- |
 Post Reply
|
|
KIT to buy Hyflux s 30% stake in SingSpring S$12m
|
|
|
katak88
Master |
07-Jul-2021 22:36
|
|
x 0
x 0 Alert Admin |
Keppel Infrastructure Trust to buy Hyflux' s 30% stake in SingSpring Desalination Plant for S$12mWED, JUL 07, 2021 - 8:34 PMKEPPEL Infrastructure Trust Kep Infra Tr: A7RU 0% (KIT) has entered into a conditional agreement to acquire the remaining 30 per cent stake it does not already own in SingSpring Desalination Plant from Hyflux for S$12 million, announced KIT' s trustee-manager on Wednesday. The desalination plant in Tuas is Singapore' s first large-scale seawater desalination plant and is capable of supplying up to 136,380 cubic metres of desalinated potable water per day. It began commercial operations in December 2005, and utilises cost and energy-efficient reverse osmosis technology. Then, it was the largest membrane-based seawater desalination plant in the world with one of the largest reverse osmosis trains. Presently, KIT owns 70 per cent of the plant and will buy out the remaining 30 per cent from the insolvent Hyflux. Jopy Chiang, CEO-designate of the trustee-manager Keppel Infrastructure Fund Management, said: " The strategic acquisition of the remaining 30 per cent stake in SingSpring Desalination Plant will enhance the operational and business continuity of the asset, and also strengthen the cash flow stability of the asset. " This is an opportunity to increase our stake in a stable asset at a level which is expected to be accretive to distribution per unit and offer an attractive risk-adjusted return for KIT." The acquisition is not expected to have any material financial impact on the distribution per unit of KIT for the financial year ending December 2021. NewSpring O& M, a unit of Keppel Infrastructure Holdings, will take over the provision of operation and maintenance services to the SingSpring Desalination Plant upon completion of the acquisition. The current operations and maintenance team at SingSpring Desalination Plant will be offered to continue their roles and duties to facilitate smooth transition. Keppel Infrastructure Holdings is the sponsor of KIT. The acquisition is subject to approvals from the PUB and the lenders under the term loan facility taken up by the trustee for the SingSpring Trust. The counter closed unchanged at S$0.555 on Wednesday, before this announcement was made. https://www.businesstimes.com.sg/energy-commodities/keppel-infrastructure-trust-to-buy-hyfluxs-30-stake-in-singspring-desalination |
| Useful To Me Not Useful To Me | |