Keppel consortium buys rest of solar platform from Shell Singapore for undisclosed sum
The acquisition of Cleantech Renewable Assets aligns with Keppel’s goal of growing its renewables business
[SINGAPORE] A consortium comprising global asset manager Keppel , private fund Keppel Asia Infrastructure Fund (Kaif) and a co-investor, has bought the remaining 49 per cent stake in Cleantech Renewable Assets (CRA) that it does not yet own from Shell Singapore.
The acquisition, which has been completed, brings the consortium’s stake in CRA, a Singapore-headquartered solar energy platform, to 100 per cent, said Keppel on Tuesday (Nov 4).
A spokesperson from Keppel declined to disclose the purchase consideration due to “commercial sensitivity”, but the consortium had earlier on in October 2022 purchased a 51 per cent stake in CRA for up to US$150 million.
Keppel said that the acquisition aligns with its goal to grow its renewables business and expand its footprint as a global asset manager and operator that creates sustainable solutions.
“(Having full ownership) of Cleantech will strengthen our ability both as a key investor and general partner to drive performance, accelerate decision-making as well as augment Keppel’s ability to create greater value from a proven and scalable renewable energy platform,” said deputy chief investment officer (CIO) Jopy Chiang.
Chiang, who is also CIO for infrastructure at Keppel, added that the company hopes to work closely with CRA’s management team to unlock “new growth opportunities” and advance its strategic focus on renewables, clean energy and decarbonisation.
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Keppel noted that CRA has “more than doubled” its solar portfolio to a total capacity of around 1.1 gigawatts (GW) across various stages of operations since the consortium’s 2022 acquisition of a majority stake in the solar energy platform, which focuses on the commercial and industrial (C&I) market segment.
CRA aims to grow its portfolio by an additional 1 GW of solar assets by end-2026, the asset manager added.
It noted that the acquisition comes at a “pivotal time” for the clean energy landscapes of South-east Asia and India, where CRA owns assets. Both regions are undergoing “rapid transformation” fuelled by national sustainability goals and “positive market economics”.
Developments in these target markets present a “favourable landscape” for the solar platform to position itself for growth, Keppel said.
Citing data from the International Energy Agency, it noted that South-east Asia’s solar sector is one of the most cost-competitive options for new electricity generation.
Meanwhile, India is targeting to achieve 500 GW of renewable capacity by 2030 and C&I renewables are projected to grow at a compound annual growth rate of around 23 per cent through 2027, it added.
Keppel said that the transaction is not expected to have material impact on its earnings per share and net tangible asset per share for the current financial year.
Kaif is a private fund that invests in a portfolio of greenfield and growth opportunities across Asia-Pacific. In September, it joined Keppel in announcing the joint divestment of an 80 per cent stake in Singaporean environmental services company 800 Super at a S$600 million valuation.
The counter closed Monday 0.5 per cent or S$0.05 higher at S$10.24.
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