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Friday, 14 November 2014

CitySpring to merge with Keppel Infrastructure?

original news source

CitySpring Said to Weigh Merger With Keppel Infrastructure
By Joyce Koh and Jonathan Browning November 13, 2014

CitySpring Infrastructure Trust (CITY), a Singapore piped-gas supplier backed by Temasek Holdings Pte, is exploring a merger with Keppel Infrastructure Trust (KIT), people with knowledge of the matter said.

The two business trusts are negotiating terms of a potential deal and no final decision on whether to proceed has been made, the people said, asking not to be named as the talks are private.

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. State investment company Temasek owns 37 percent of CitySpring, which has a market value of S$782 million ($605 million), according to data compiled by Bloomberg.

Both trusts were suspended from trading in Singapore, pending the release of an announcement. Spokesmen for CitySpring and Keppel Infrastructure said they couldn’t immediately comment. CitySpring units were up 2 percent at 51.5 Singapore cents at the time of the halt, headed for the highest close since June 2011. Keppel Infrastructure gained 0.5 percent.

An average 221,600 Keppel Infrastructure units changed hands daily in the past year, compared with an average 2.3 million units for trusts listed in Singapore, according to data compiled by Bloomberg. About 737,000 CitySpring units were traded daily over the same period, the data show.

CitySpring’s gas business generated 76 percent of its sales for the year ended March, data compiled by Bloomberg show. 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 percent owned by Keppel Corp., a maker of offshore oil rigs whose largest shareholder is Temasek, data compiled by Bloomberg show.

To contact the reporters on this story: Joyce Koh in Singapore at; Jonathan Browning in Hong Kong at

To contact the editors responsible for this story: Philip Lagerkranser at


Money Honey :-

K-Green is cash rich so it is likely Temasek is using it to inject much needed funds into CitySpring.  Win-win for both K-Green and CitySpring.  Dividend income for K-Green and CitySpring gets the money.  This is just my gut-feeling.

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