TEMASEK-LINKED CitySpring Infrastructure Trust is said to be exploring a merger with Keppel Infrastructure Trust, according to Bloomberg on Friday.
Quoting people with knowledge of the matter, the wire agency said the two business trusts are negotiating terms of a potential deal and no final decision on whether to proceed has been made. The two trusts have sought a halt in the trading of their units, "pending release of an announcement''.
Bloomberg said a transaction would combine Singapore's sole producer of residential gas with Keppel Infrastructure Trust, which generates power from city waste and supplies reclaimed water to industrial users.
Temasek owns 37 per cent of CitySpring, which has a market value of S$782 million, according to data compiled by Bloomberg.
Spokesmen for CitySpring and Keppel Infrastructure said they couldn't immediately comment.
CitySpring's gas business generated 76 per cent of its sales for the year ended March, data compiled by Bloomberg shows. The company also supplies desalinated water, transmits electricity and manages telecommunications assets.
Keppel Infrastructure Trust, with a market value of S$655 million, has a mandate to invest in energy and environmental infrastructure assets in Singapore, Asia-Pacific and Europe. It is 49 per cent-owned by diversified marine conglomerate Keppel Corp, whose largest shareholder is Temasek.