An enlarged Keppel Infrastructure Trust starts trading on SGX

KEPPEL Infrastructure Trust (KIT), formerly known as CitySpring Infrastructure Trust (CIT), on Tuesday commenced trading on Singapore Exchange (SGX).

This comes a day after CIT completed the acquisition of all the assets and liabilities of KIT for a consideration of 1.33 billion CIT units at S$0.496 apiece, and the completion of the acquisition of Senoko Waste-to-Energy (WTE) Plant, Keppel Seghers Tuas WTE Plant and Keppel Seghers NEWater Plant.

"With the injection of these three assets into its portfolio, the enlarged KIT is the largest Singapore infrastructure-focused business trust listed on SGX," said KIT in a statement.

KIT will also undertake the approved acquisition of Keppel Merlimau Cogen Plant (KMC), an operating top-tier 1,300 megawatt gas-fired power plant in Singapore. After the KMC acquisition - which is expected to be completed by Q3 2015 - KIT will have an expected total asset size of over S$4 billion, said the Trust.

"With an enlarged and diversified portfolio, KIT's ability to offer investors long-term, predictable and sustainable returns is enhanced," said Keppel Infrastructure Fund Management (KIFM) CEO Khor Un-Hun.

The enlarged KIT will take on the SGX trading counter name "Kep Infra Tr fka CIT" for an interim period of three months with effect from Tuesday. The counter name will subsequently be changed to "Kep Infra Tr". KIT will also adopt "A7RU" as its SGX ticker code.

On Tuesday, KIT appointed Daniel Cuthbert Ee Hock Huat, former chairman of CitySpring Infrastructure Management (the former trustee-manager of CIT), as an independent director. With the appointment of Mr Ee, KIFM will have eight directors, of whom six are independent directors.