Keppel Asia Infrastructure Fund LP (KAIF) and Keppel, via its infrastructure division, are selling their combined 80% interest in 800 Super Holdings in a deal that values the waste management company at over $600 million.
The buyer is Actis, a leading growth market investor in sustainable infrastructure, which has raised some US$26 billion since inception.
KAIF and Keppel now hold 48% and 32% interests respectively in 800 Super and will receive their share of the consideration in cash.
The remaining 20% interest in 800 Super is held by William Lee, 800 Super’s co-founder and CEO, who will be divesting a 10% stake to Actis and retaining a 10% stake following the transaction.
Back in 2022, the Keppel entities paid $380 million for their 80% stake.
The deal marks KAIF's first divestment. Keppel is on an active asset monetisation programme, with an eye to divest between $10 and 12 billion by the end of next year. Prior to this 800 Super deal, Keppel had already divested $7.8 billion worth of assets since Oct 2020, when this strategy was laid down.
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800 Super is one of three licensed public waste collectors in Singapore, providing municipal waste collection services. Previously listed on the SGX, 800 Super was privatised in 2019.
“The divestment of 800 Super demonstrates Keppel’s ability as a global asset manager and operator to identify unique opportunities as well as enhance and crystallise value from our investments at the right time," says Jopy Chiang, deputy chief investment officer and chief investment officer, infrastructure of Keppel.
"Over the past three years, we leveraged our infrastructure expertise, working alongside 800 Super’s management team to optimise the company’s operations, expand its capabilities and market exposure as well as strengthen its robust contract portfolio," he adds.
This has helped 800 Super achieve 20% EBITDA growth since Keppel's acquisition in 2022 and is expected to generate an Internal Rate of Return in the mid-teens and capital gains equivalent to half the amount invested for KAIF’s limited partners upon divestment.
The transaction is slated for completion by the end of the year and is not expected to have any material impact on the net tangible asset per share or earnings per share of Keppel for the current financial year.
Keppel shares closed at $8.82 on Sept 22, up 0.57% for the day and up 28.38% year to date.
