Keppel Entities Divest 80 Stake 800 Super 600 Million Valuation
divestmentKeppel Corp’s 2Q earnings down 16% to $120.5 mil
Keppel Asia Infrastructure Fund LP (KAIF) and Keppel’s infrastructure division have entered into a deal to sell their combined 80% interest in 800 Super Holdings to Actis, a leading growth market investor in sustainable infrastructure. The sale values the waste management company at over $600 million.
Actis, which has raised some US$26 billion since its inception, will acquire a 48% and 32% stake in 800 Super from KAIF and Keppel respectively. The remaining 20% stake will be held by 800 Super’s co-founder and CEO William Lee, who will sell 10% to Actis and retain 10% after the transaction is complete.
The Keppel entities had acquired their 80% stake in 800 Super for $380 million back in 2022. This marks KAIF’s first divestment, while Keppel continues with its active asset monetisation programme. The company aims to divest between $10 and 12 billion by the end of next year and has already divested $7.8 billion worth of assets since October 2020.
800 Super is one of the three licensed public waste collectors in Singapore that provides municipal waste collection services. The company was previously listed on the SGX but was privatised in 2019.
According to Jopy Chiang, deputy chief investment officer and chief investment officer, infrastructure of Keppel, “The divestment of 800 Super demonstrates Keppel’s ability as a global asset manager and operator to identify unique opportunities and enhance and crystallise value from our investments at the right time.” Chiang added that over the past three years, Keppel has used its infrastructure expertise to work alongside 800 Super’s management team and improve the company’s operations, expand its capabilities and market exposure, and strengthen its contract portfolio. This has resulted in a 20% EBITDA growth for 800 Super since Keppel’s acquisition in 2022, and the company is expected to generate a mid-teens Internal Rate of Return and capital gains equivalent to half the amount invested for KAIF’s limited partners upon divestment.
The transaction is expected to be completed by the end of the year and is not expected to have any significant impact on Keppel’s net tangible asset per share or earnings per share for the current financial year.
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