Keppel Group is buying South Korean waste management company Eco Management Korea Holdings (EMK) for KRW626.1bn (€471m).
Keppel Infrastructure Trust (KIT), will hold a 52% interest in the special purpose vehicle created for the transaction. Keppel Asia Infrastructure Fund (KAIF) and Keppel Infrastructure Holdings (KI), subsidiaries of Singaporean conglomerate Keppel Corporation, will have 30% and 18% interest respectively in the vehicle.
EMK is a leading integrated waste management services player in South Korea, serving the national market. It operates 6 waste-to-energy plants and 5 sludge-drying facilities.
Jopy Chiang, CEO of Keppel infrastructure fund management said the acquisition of a majority stake in EMK was in line with KIT’s strategy of investing in good quality environmental businesses that generate long-term stable cash flows with the potential for growth.
“The strategic addition of this waste management platform will enable KIT to grow its income base and improve portfolio resiliency with an evergreen business. In addition, the proposed acquisition will also diversify KIT’s income geographically, enhancing the resilience of our portfolio,” she said.
Christina Tan, CEO of Keppel Capital, the parent company of the manager of KAIF said: “We are pleased to tap on the Keppel Group’s collective strengths to acquire KAIF’s first environmental investment since the fund’s launch in January 2020.”
“Keppel Infrastructure’s co-investment with KIT and KAIF in EMK is a prime example of how we can collaborate and unlock value as OneKeppel to grow our sustainable infrastructure business,” said Cindy Lim, CEO of Keppel Infrastructure, said.
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