A CONSORTIUM comprising Keppel Corporation BN4 : BN4 0% , Keppel Asia Infrastructure Fund LP (KAIF) and a co-investor of KAIF will acquire the remaining 50 per cent stake in Cleantech Solar Asia (CSA) for US$115 million.

The resultant increased stake in Cleantech's asset company will accelerate Keppel's plans to grow its renewable business, the company said in a statement on Tuesday (Mar 15).

Keppel will satisfy its share of the consideration, which is US$69 million, in cash using internal resources, the company said.

The partners are conducting the purchase through Cloud Alpha, which is 60 per cent owned by Keppel through Keppel Renewable Investments and 40 per cent owned by KAIF and its co-investor.

The consortium is buying the stake from CEF 200 BV, which is owned by a fund managed by Climate Fund Managers.

The consortium had on Dec 13 last year announced that it was acquiring a 51 per cent stake in Cleantech Renewable Assets (CRA), which in turn owns 50 per cent of CSA.

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Following the latest transaction, the consortium's collective effective stake in CSA - which is CRA's asset company - will be pushed up from 25.5 per cent to 75.5 per cent.

Of the US$115 million price tag, a proportion will be paid on completion of the transaction, with the remainder being deferred to Dec 31, 2024.

The consideration was arrived at after negotiations on a willing-buyer, willing-seller relationship basis, and factoring in the strategic merits, development pipeline and platform value of CSA, as well as synergy with the CRA transaction and other prevailing market conditions.

This transaction is expected to close in H1 2022, and subject to the completion of the CRA deal, as well as certain other conditions including regulatory and other approvals.

Loh Chin Hua, chief executive of Keppel, said: "The increased stake in Cleantech's solar asset portfolio is testament to Keppel's commitment to grow its renewables business as part of Vision 2030.

"Increasing our additional stake in Cleantech's solar assets through the acquisition of our stake in CSA will also increase the Keppel Group's exposure to Cleantech's growing solar business, and in turn strengthen the ability to create collaboration and synergy opportunities with the rest of the Keppel Group."

Shares of Keppel ended Tuesday at S$6.09, down 0.3 per cent or S$0.02.