Keppel Infrastructure & KIFM Sign Term Sheet for Proposed Sale & Purchase of KMEDP

Source: www.gulfoilandgas.com 6/30/2022, Location: Asia

The Keppel Marina East Desalination Plant (KMEDP), which is owned by Keppel Infrastructure Holdings Limited (Keppel Infrastructure), and Keppel Infrastructure Fund Management Pte Ltd (KIFM), as Trustee-Manager of Keppel Infrastructure Trust (KIT), have signed a non-binding term sheet with the intention to enter into definitive agreements regarding the sale and purchase of a 50% equity stake in MEW (Proposed Transaction). As KIT's sponsor, Keppel Infrastructure is a company.

The Proposed Transaction is subject to customary closing conditions including approvals by shareholders and PUB, as well as the receipt of applicable regulatory approvals.

Upon the completion of the Proposed Transaction, it is expected that Keppel Infrastructure and KIT will each hold a 50% joint-controlling stake in MEW, with KIT receiving 100% of the economic interest from MEW.

KMEDP will continue to be operated and maintained till 2045 by Marina East Water O&M Pte. Ltd., a wholly owned subsidiary of Keppel Infrastructure, allowing MEW to benefit from proven water services and diverse operating capabilities of Keppel Infrastructure while contributing to Keppel Infrastructure’s long-term, recurring income from the operating and maintenance (O&M) fees.

Ms 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. Through unlocking value from KMEDP, the Group will be able to redeploy capital towards other growth initiatives, such as renewables and environmental infrastructure, as well as low carbon and decarbonisation solutions in line with Vision 2030. As the developer of the KMEDP, Keppel Infrastructure is well placed to continue operating the plant and maintaining the high standards required for this state-of-the-art infrastructure.”

Mr Jopy Chiang, CEO of KIFM, said, “This is a highly anticipated acquisition that will enhance the strength and resilience of the KIT portfolio. KMEDP is a stellar asset from our Sponsor that will add to KIT’s green credentials, reinforcing our commitment to invest in high-quality and energy efficient assets. Besides being one of the key assets contributing to Singapore’s water resilience, KMEDP has a long-term contract with a strong counterparty, which will improve KIT’s cash flow visibility. The strategic addition of KMEDP is expected to support the overall distributable income per unit accretion to our Unitholders.”

The KMEDP, Singapore’s fourth desalination plant, is capable of producing 137,000 cubic metres (about 30 million gallons) of fresh drinking water per day. The plant commenced commercial operations on 29 June 2020 and has a 25-year concession, from 2020 to 2045, under a Design, Build, Own and Operate (DBOO) arrangement with National Water Agency, PUB. Located at Marina East, the KMEDP is Singapore’s first and only large-scale dual mode plant, which can treat seawater or rainwater drawn from the Marina Reservoir.

Keppel Corporation Limited, the parent company of Keppel Infrastructure, and KIT will make the necessary announcements, if and when, there are material developments.


Australia >>  8/11/2022 - Santos has acquired Hunter Gas Pipeline Pty Ltd which owns an approved underground gas pipeline route from Wallumbilla in Queensland to Newcastle in N...
Nigeria >>  8/11/2022 - Seplat Energy has become aware of a news report that Ministerial Approval of the Company's proposed acquisition of the entire share capital of Mobil P...

Mexico >>  8/10/2022 - Earthstone Energy, Inc. announced the closing of the acquisition of the New Mexico assets of Titus Oil & Gas Production, LLC and Titus Oil & Gas Produ...
Nigeria >>  8/10/2022 - Seplat Energy has become aware of news and social media reports alleging impropriety in the process of securing ministerial consent to the acquisition...

India >>  8/9/2022 - Shell Overseas Investment B.V., a wholly owned subsidiary of Shell plc (Shell), has completed its 100% acquisition of Solenergi Power Private Limited ...
Tanzania >>  8/9/2022 - Orca Energy Group Inc. notes the announcement by Swala Oil and Gas (Tanzania) PLC (“Swala”) titled “IMPACT OF ACCOUNTING FAILURES IN PAEM ON SWALA ACC...




Gulf Oil and Gas
Copyright © 2021 Universal Solutions All rights reserved. - Terms of Service - Privacy Policy.