Keppel to list “green” infrastructure focused business trust
26 January 2010
Keppel Corporation Limited (Keppel) is pleased to announce that its wholly-owned subsidiary, Keppel Integrated Engineering Limited (KIE), is sponsoring the listing of units (KGT Units) of a business trust known as K-Green Trust (KGT) on the Main Board of the Singapore Exchange Securities Trading Limited (SGX-ST) by way of an introduction. In addition, Keppel is proposing a dividend in specie of approximately 50.5% of the total number of Units of KGT in issue and held directly by Keppel immediately prior to KGT’s listing, to be distributed to its shareholders.
The investment objective of KGT is to invest in “green” infrastructure assets in Singapore and globally with a focus on Asia, Europe and the Middle East. KGT aims to provide long-term, regular and predictable distributions to its unitholders.
As of today, the Senoko Waste-to-Energy Plant (formerly known as Senoko Incineration Plant), which KIE acquired from the Singapore Government in August 2009, has been transferred into KGT as seed asset. KIE will further transfer two assets -- the Keppel Seghers Tuas Waste-to-Energy Plant and the Ulu Pandan NEWater Plant -- into KGT prior to the listing.
Mr Michael Chia, Deputy Chairman and Chief Executive Officer of KIE, said, “The listing of KGT is timely. It will offer the eco-conscious investors the opportunity to invest in and benefit from “green” infrastructure assets, such as waste management plants, water and wastewater treatment plants and renewable energy or energy efficient infrastructure assets.
“Our strong global track record, technological advantage and network will position us well to identify and develop a pipeline of “green” infrastructure assets for KGT. For this listing, KGT’s portfolio will comprise our Singapore assets.”
Subject to the approval of Keppel shareholders, the in-principle approval from the SGX-ST for the listing of KGT, and the satisfaction of such conditions as may be required, and approval being granted, by the National Environment Agency of Singapore and the Public Utilities Board of Singapore in connection with the holding of the three plants by KGT as well as any other regulatory or other approvals, approximately 50.5% of the total number of Units in issue and held directly by Keppel immediately prior to KGT’s listing will be distributed by way of a dividend in specie to entitled shareholders in proportion to their holdings in Keppel, with every entitled shareholder receiving 1 Unit for every 5 shares held. The distribution amounts to approximately S$379 million in the form of up to 326 million KGT Units. This translates into an implied value of approximately S$1.16 per KGT Unit, and a distribution value per share of approximately 23 cents.
This proposed dividend in specie forms part of the total dividend of 61 cents per share which Keppel is proposing to offer to shareholders for FY2009. The distribution will be made at the pro forma net book value of KGT (with the three plants) of approximately S$750 million.
Following KGT’s listing, KIE will retain approximately 49.5% of the Units.
Mr Choo Chiau Beng, Chief Executive Officer of Keppel, said, “With our vision to be the provider of choice for solutions in sustainable environment and urban living, KGT is a key component of our strategy to achieve sustainable growth in our businesses.
“As Keppel had a record year in 2009, we are pleased to be able to reward Keppel shareholders with the opportunity to invest in this “green” infrastructure focused business trust through a dividend in specie. With the global economy recovering well, we are confident of the positive growth potential of the “green” business worldwide.”
The completion of the dividend in specie and the commencement of trading of the Units on the Main Board of the SGX-ST are expected to take place in the second quarter of 2010.
A circular to shareholders in relation to the proposed dividend in specie and an introductory document with detailed information on KGT, including its portfolio of assets and business immediately prior to the proposed listing, will be despatched to shareholders in due course.
For further details of the proposed dividend in specie and the proposed listing, please refer to Keppel’s announcement dated 26 January 2010 posted on the SGXNET.
About Keppel Integrated Engineering (KIE)
KIE is a wholly-owned subsidiary of Keppel Corporation Limited.
The Keppel Seghers group of companies (Keppel Seghers Group), which are owned by KIE, are leading providers of comprehensive environmental solutions ranging from consultancy, design and engineering, technology and construction to operations and maintenance of facilities. Its advanced technology solutions address a wide spectrum of environmental issues such as solid waste, wastewater, drinking & process water, biosolids & sludge. In addition, Keppel Seghers Group offers a full range of environmental-friendly industry applications for the removal of organic substances from metal parts and tools.
Keppel Seghers Group has an established track record of involvement in waste-to-energy (WTE) projects in Europe, the Americas and the Asia Pacific for more than 40 years.
In April 2009, Keppel Seghers also secured an Engineering, Procurement and Construction (EPC) contract worth approximately S$518 million to build an Energy-from-Waste Combined Heat and Power Plant (EFW CHP plant), featuring Keppel Seghers’ technology, to serve the Greater Manchester region in the United Kingdom.
Notably, in the Middle East, Keppel Seghers Group is implementing two contracts worth approximately S$1.7 billion by the Ministry of Municipality and Urban Planning of Qatar for the Engineering, Procurement and Construction (EPC) and Operation and Maintenance of an integrated solid waste management facility which can treat 2,300 tonnes of waste per day.
Currently, Keppel Seghers Group is the only private operator of WTE plants in Singapore. Owning and operating two out of four WTE plants in Singapore, Keppel Seghers Group has the capacity to treat almost half of Singapore’s waste that is sent for incineration.
About Keppel Corporation (Keppel)
With a global footprint in over 30 countries, Keppel leverages its international network, resources and talents to grow its key businesses in Offshore & Marine, Property and Infrastructure.
Keppel aims to be the Provider of Choice for Solutions to the Offshore & Marine Industries, Sustainable Environment and Urban Living, guided by its three key business thrusts of Sustaining Growth, Empowering Lives and Nurturing Communities.
For further information, please contact
Eva Ho (Ms)
Assistant General Manager
Group Corporate Communications
Keppel Corporation Limited
Tel: (65) 64136424 / (65) 96176234
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