Keppel Infrastructure Trust Proposes Acquisition of Additional 39% Stake in Keppel Merlimau Cogen
Key Highlights and Potential Impact for KIT Investors
Keppel Infrastructure Trust (“KIT”) has announced a significant proposed transaction that could materially affect its portfolio and future distributions: the acquisition of an additional 39% interest in Keppel Merlimau Cogen Pte Ltd (“KMC”), a key power generation facility in Singapore. The deal, if approved and completed, will elevate KIT’s total stake in KMC from 51% to 90%, with the remaining 10% held by Keppel Energy Pte. Ltd. This move underscores KIT’s strategy to deepen its exposure to essential energy infrastructure assets, positioning itself as a major player in Singapore’s energy landscape.
Transaction Overview
- Purchase Consideration: Up to approximately S\$128.1 million, inclusive of a “Ticker Amount” of up to S\$7.2 million (the final amount depends on the completion date).
- Funding: The acquisition will be financed through a combination of internal funds and/or external borrowings.
- Structure: KIT will acquire 100% of Kindle Energy Pte. Ltd. from KCIF Investments Pte. Ltd., which holds the 39% stake in KMC.
- Valuation: An independent valuation by Deloitte Singapore SR&T Pte. Ltd. pegs the 39% stake at between S\$106.5 million and S\$118.1 million. The agreed purchase price is close to the mid-point of this range, suggesting a fair market deal.
About Keppel Merlimau Cogen (KMC)
KMC is a 1,300 MW hydrogen-ready combined cycle gas turbine power plant located on Jurong Island, supplying over 10% of Singapore’s electricity needs. The plant is equipped for future energy transitions, including hydrogen co-firing, ensuring long-term relevance and sustainability.
- Long-term Contractual Stability: KMC benefits from a 15-year capacity tolling agreement (CTA) with Keppel Electric Pte Ltd, signed in May 2015. This contract ensures regular fixed capacity payments, largely shielding KMC from market price volatility and passing through most operating costs.
- Operational Excellence: The plant has achieved an average contractual availability of around 98% over the past 10 years, reflecting high reliability and efficiency.
- Regulatory Alignment: KIT’s increased stake in KMC aligns with Singapore’s energy security and decarbonisation goals.
Key Investment Highlights
- Increased Ownership of a Critical Asset: KIT builds on a decade of operational experience at KMC, leveraging deep technical and commercial knowledge.
- Robust, Stable Cash Flow Generation: Long-term contracts with risk-mitigating features underpin predictable revenues. Most operational costs are contractually passed through, protecting KIT from inflation and cost surges.
- Boosts Portfolio Resilience & Energy Security Exposure: The acquisition strengthens KIT’s portfolio of essential infrastructure and supports national energy objectives.
- Accretive to Unitholders: The deal is expected to increase both Funds from Operations (FFO) and Distribution per Unit (DPU) for FY2025.
Pro Forma Financial Impact
- FFO for FY2025: Expected to rise from S\$326 million to S\$352 million, an 8% increase.
- DPU for FY2025: Expected to rise from 3.94 Singapore cents to 4.18 Singapore cents, a 6% increase.
- Note: These figures are based on assumptions that the acquisition is completed by January 1, 2025, and are not necessarily indicative of future performance.
Valuation and Independent Opinion
The independent valuation by Deloitte confirms that the purchase consideration is fair and within the indicative market value range. The Independent Financial Adviser, PrimePartners Corporate Finance Pte. Ltd., opines that the transaction is on normal commercial terms and not prejudicial to the interests of KIT and minority unitholders.
Important Dates and Shareholder Actions
- Deadline for Voting Instructions (via intermediaries): 9 June 2026, 5:00 p.m.
- Deadline to Submit Proxy Forms: 16 June 2026, 2:30 p.m.
- Extraordinary General Meeting (EGM): 18 June 2026, 2:30 p.m. – Unitholder approval is required for the transaction to proceed.
Shareholder Action Required: The transaction is subject to unitholder approval at the EGM. Investors are strongly encouraged to participate in the vote, as the outcome will directly affect KIT’s future earnings, portfolio resilience, and distribution prospects.
Potential Price Sensitivity and Strategic Implications
- This transaction is price-sensitive. If approved, the acquisition should boost KIT’s recurring income and DPU, potentially supporting a higher unit price.
- Strategic Value: The increased stake gives KIT greater control over a key infrastructure asset, aligns with national energy priorities, and future-proofs the portfolio against regulatory and technology changes (e.g., hydrogen transition).
- Risks: As with all investments, there are risks, including regulatory changes, operational disruptions, and financing costs. However, long-term contracts and cost pass-throughs mitigate many of these risks.
Contact and Further Information
For more details, investors can contact KIT’s Investor Relations at [email protected] or visit www.kepinfratrust.com.
Disclaimer: This article is for informational purposes only and does not constitute investment advice or a recommendation to buy, sell, or hold any security. Investors should conduct their own due diligence and consult professional advisers before making investment decisions. The forward-looking statements herein are subject to risks and uncertainties and actual results may differ materially from projections.
吉宝基础设施信托拟收购Merlimau Cogen电厂额外39%股权，投资者须知
要点与潜在影响
吉宝基础设施信托（KIT）宣布拟收购Keppel Merlimau Cogen Pte Ltd（KMC）额外39%股权，若交易完成，KIT将合计持有KMC 90%权益，仅剩10%由Keppel Energy Pte. Ltd.持有。本次交易彰显KIT强化能源基础设施布局、巩固新加坡能源核心地位的战略决心。
交易概览
- 交易对价：最高约1.281亿新元，包括因完成日而异的“Ticker Amount”最高720万新元。
- 融资方式：内部资金及/或外部借款。
- 交易结构：KIT将从KCIF Investments Pte. Ltd.收购Kindle Energy Pte. Ltd.全部股权（持有KMC 39%股权）。
- 估值：德勤独立估值KMC 39%股权区间为1.065亿至1.181亿新元，成交价接近中位数，显示交易价格合理。
KMC电厂简介
- 1,300兆瓦氢能兼容联合循环燃气轮机发电厂，位于裕廊岛，供应新加坡超10%电力需求。
- 长期合同保底：与Keppel Electric签订15年容量通道协议（CTA），保障稳定固定容量收入，规避市场波动风险，并实现大部分运营成本转嫁。
- 运营优异：过去十年平均合同可用率约98%。
- 契合国家能源转型：支持能源安全和低碳目标。
投资亮点
- 增加对核心资产持有比例，巩固十年运营经验。
- 强劲稳定现金流，合同保护风险有限。
- 提升组合抗风险能力与能源安全属性。
- 对持有人分派具增值效应。
财务影响（预计）
- 2025财年自由现金流（FFO）：预期由3.26亿新元增至3.52亿新元，增幅8%。
- 2025财年每单位分派（DPU）：由3.94新加坡分增至4.18分，增幅6%。
- 注：上述数据基于假设，实际表现受多因素影响。
估值与独立意见
德勤独立估值认为，收购价格合理，独立财务顾问PrimePartners Corporate Finance认为交易公平、未损害小股东利益。
重要日期与持有人注意事项
- 经中介投票截止：2026年6月9日17:00
- 代理投票表格提交截止：2026年6月16日14:30
- 持有人大会（EGM）：2026年6月18日14:30，需持有人批准交易
持有人须知：该交易需经持有人大会批准，建议投资者积极参与投票，因结果将直接影响未来收益与分配。
潜在股价影响与战略意义
- 本次收购具价格敏感性。 若获批，预期将提升KIT收益与分派，有望带动单位价格上行。
- 战略层面，KIT将进一步掌控关键基础设施资产，契合国家能源政策，顺应氢能等未来趋势。
- 风险方面，尽管面临政策、运营、融资等不确定性，但长期合同与成本转嫁机制提供强有力缓冲。
联系方式
详情可联系 KIT 投资者关系邮箱：[email protected] 或访问 www.kepinfratrust.com。
免责声明： 本文仅供参考，不构成投资建议。投资者应自行进行尽职调查，并咨询专业顾问。文中前瞻性陈述存不确定性，实际结果或存在重大差异。
