Keppel Infrastructure and Keppel Infrastructure Trust (KIT) have agreed to purchase Keppel Marina East Desalination Plant in Singapore for an enterprise value of about S$355m (€245m)
The two subsidiaries of Keppel Corporation plan to acquire a 50% equity stake in Marina East Water (MEW), which owns the Keppel Marina East Desalination Plant (KMEDP).
Post-transaction, Keppel Infrastructure and KIT are expected to each hold a 50% joint-controlling stake in MEW, with KIT receiving 100% of the economic interest from MEW.
Cindy Lim, CEO of Keppel Infrastructure said: “The proposed transaction involving the KMEDP is part of the Keppel Group’s asset monetisation strategy and asset-light business model under Vision 2030.”
Lim said the group would be able to free capital, which would be redeployed on renewables and environmental infrastructure, as well as low carbon and decarbonisation solutions.
Jopy Chiang, CEO of KIFM, said, “This is a highly anticipated acquisition that will enhance the strength and resilience of the KIT portfolio. “
Chiang said KMEDP had a long-term contract with a strong counterparty, which would improve KIT’s cash flow visibility.
The plant is the only one in the city state capable of treating both sea and reservoir water and has a capacity of producing 30m gallons of fresh water a day.
The plant commenced commercial operations in 2020 on a 25-year concession arrangement with the National Water Agency.
To read the latest edition of the latest IPE Real Assets magazine click here.
