Keppel Infrastructure Trust to acquire 70% stake in power plant for up to S$111.6 million
The acquisition would have increased KIT’s DPU by about 5.1% to S$0.0414
Keppel Infrastructure Trust (KIT) is planning to acquire a 70% stake in Keppel Sakra Cogen (KSC), a hydrogen-compatible combined-cycle power plant located on Jurong Island. The acquisition would be valued at up to S$111.6 million and is expected to increase KIT's distribution per unit (DPU) by around 5.1% to S$0.0414 from S$0.0394.
KSC currently operates on natural gas but can also co-fire up to 30% hydrogen. The deal, which includes a base price of S$105 million and a potential additional payment of S$6.6 million, would give KSC an enterprise value of over S$780 million on a 100% basis, considering its projected net debt after refinancing. Keppel Infrastructure Trust will retain 30% of the stake in KSC, while the remaining 70% will be acquired by KIT.
The acquisition is subject to regulatory approvals and a vote of KIT unitholders at an extraordinary general meeting.
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