THE manager of Keppel Infrastructure Trust (KIT) A7RU on Thursday (Mar 24) said it is undertaking a strategic review of KIT's wholly-owned Ixom business, with a view to potentially unlock value from the asset.
Ixom is the sole manufacturer of liquefied chlorine, as well as the leading manufacturer of caustic soda in Australia, the trustee-manager said in a bourse filing.
It was acquired by KIT in 2019 and is among the leading industrial infrastructure businesses in Australia and New Zealand, supplying and distributing critical water treatment chemicals and industrial and specialty chemicals key to fundamental industries.
These include the water treatment, dairy, agriculture, mining and construction sectors. Ixom's chemical manufacturing and supplies were classified as essential services during the Covid-19 pandemic.
Through the strategic review, the trustee-manager is looking to further KIT's growth and maximise long-term unitholder returns. The exercise is part of the diversified business trust's regular asset review process.
The trustee-manager will appoint a financial adviser in connection with the strategic review. It may, through the financial adviser, enter preliminary discussions with various parties to evaluate the viability of any options.
"There is no assurance that any transaction will materialise from such a strategic review or that any definitive or binding agreement will be reached," it added.
Units of KIT closed 0.9 per cent or S$0.005 higher at S$0.555 on Wednesday.