Keppel Infrastructure Trust to acquire 70% stake in power plant for up to S$111.6 million

Résumé détaillé

The acquisition would have increased KIT’s DPU by about 5.1% to S$0.0414

The acquisition would have increased KIT’s DPU by about 5.1% to S$0.0414

[SINGAPORE] Keppel Infrastructure Trust (KIT) is proposing to acquire a 70 per cent stake in Keppel Sakra Cogen (KSC), a hydrogen-compatible combined-cycle power plant, for up to S$111.6 million.

According to KIT’s trustee-manager on Wednesday (Nov 11), KSC is Singapore’s first hydrogen-compatible combined-cycle power plant. The acquisition from Keppel Asia Infrastructure Fund and a co-investor is expected to be distribution per unit (DPU) accretive.

Based on pro forma FY2025 figures, the acquisition would have increased KIT’s DPU by about 5.1 per cent to S$0.0414 from S$0.0394, before scheduled principal repayments on KSC’s refinanced debt begin.

After these repayments commence, the acquisition would still be DPU-accretive by about 2.8 per cent, raising DPU to S$0.0405.

The purchase consideration for the 70 per cent stake comprises a base price of S$105 million and an additional payment of up to S$6.6 million, assuming the deal is completed by Mar 10, 2027.

The deal implies an enterprise value of more than S$780 million for KSC on a 100 per cent basis, taking into account its projected net debt following refinancing.

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KIT intends to fund the acquisition through internal funds, external borrowings or a combination of both. Keppel’s infrastructure division will retain the remaining 30 per cent stake.

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