KIFM to buy Merlimau Cogen Plant stake for $100m

Keppel Infrastructure Fund Management (KIFM), arsenic trustee-manager of Keppel Infrastructure Trust (KIT), has signed an statement to get an further 39% involvement successful the Keppel Merlimau Cogen Plant (KMC) successful Singapore from Keppel Core Infrastructure Fund (KCIF) for up to astir S$128.1m ($100m).

Following this transaction, KIT volition straight and indirectly clasp a full 90% involvement successful the 1.3GW combined-cycle state turbine installation connected Jurong Island, portion the remaining 10% volition enactment with Keppel’s Infrastructure Division.

The works presently supplies much than 10% of Singapore’s powerfulness needs and entered cognition successful 2007 arsenic the country's archetypal autarkic powerfulness project.

The projected acquisition is taxable to respective conditions precedent including regulatory support and acceptance by KIT unitholders astatine an upcoming bonzer wide meeting.

KIFM plans to concern the acquisition utilizing a premix of interior funds and outer borrowings.

KMC, which features a semipermanent proviso declaration with Keppel’s Infrastructure Division, has undergone upgrades implicit the past 4 years to 2 of its state turbines, improving operational ratio and reducing emissions.

These enhancements are designed to widen the plant’s operational lifespan and hole it for aboriginal shifts successful vigor accumulation including compatibility with hydrogen use.

If the acquisition had taken effect from the opening of 2025 done to year-end, KIT’s organisation per portion (DPU) would person reached $0.0418, a 6% summation implicit the erstwhile DPU of $0.0394 for the 2025 fiscal year.

The transaction besides forms portion of Keppel’s ongoing superior recycling strategy and worth realisation process, allowing redeployment of funds into different investments.

Keppel lawman CIO and Keppel Infrastructure CIO Jopy Chiang said: “The projected merchantability of KCIF’s involvement successful Keppel Merlimau Cogen Plant to KIT reflects our quality to make worth for aggregate stakeholders by leveraging Keppel’s powerfulness procreation capabilities.

“Supported by a semipermanent capableness tolling statement with Keppel’s Infrastructure Division done 2040, KMC is good positioned to present unchangeable yields for KIT’s unitholders.

“In addition, arsenic the relation of KMC, Keppel remains committed to maintaining a precocious level of operational efficiency, which not lone allows america to execute prime returns but besides lend to Singapore’s vigor resilience.”

"KIFM to bargain Merlimau Cogen Plant involvement for $100m" was primitively created and published by Power Technology, a GlobalData owned brand.

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