CitySpring and Keppel trusts merging to form S$2b entity

Proposed share swap deal will be followed by equity fund raising to acquire majority stake in Keppel Merlimau Cogen

Mindy Tan

Published Tue, Nov 18, 2014 · 09:50 PM

Singapore

KEPPEL Infrastructure Trust (KIT) and CitySpring Infrastructure Trust are poised to create the largest Singapore infrastructure-focused business trust listed on the Singapore Exchange, following the combination of the two trusts, and the acquisition of a stake in Keppel Merlimau Cogen.

When completed, the two transactions will yield a combined trust with a market capitalisation expected to exceed S$1.9 billion and total assets in excess of S$4 billion.

Under the proposed deal, CIT will acquire all the business undertakings and assets of KIT in exchange for 1.326 billion new units of CIT. The swap ratio was arrived at based on the market capitalisations of KIT (S$658 million) and CIT (S$753 million), and their units' respective volume weighted average prices for…

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