Cityspring Infrastructure Trust

Request for Trading Halt pending release of an announcement.

Cityspring & Keppel Infrastructure trading halt.

M&A for 2 ITE companies...

On their own they can't acquire for the longest time...

A merger will help to convince many that they have a new continuity since they simply find no more ways out to confuse many already...

Avoid sovereign, prefer GODfathers and COMmunists.

vested
CS
GG

(14-11-2014, 11:08 AM)flinger Wrote: Request for Trading Halt pending release of an announcement.

Cityspring & Keppel Infrastructure trading halt.

Sounds like a DC Reit in the making, no? Since cityspring went into their first foray into the market.

DC market is capital intensive, supposed to be profitable and have moat in the long run.

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CitySpring Infrastructure Trust, a Singapore piped-gas supplier backed by Temasek Holdings, is exploring a merger with Keppel Infrastructure Trust, Bloomberg News reported on Friday, citing people with knowledge of the matter.

Bloomberg said the two business trusts are negotiating terms of a potential deal and no final decision on whether to proceed has been made.

CitySpring is Singapore's sole producer of residential gas while Keppel Infrastructure Trust generates power from city waste and supplies reclaimed water to industrial users.

Temasek 37 per cent of CitySpring, which has a market value of $782 million, according to data compiled by Bloomberg.

- See more at: http://www.straitstimes.com/news/busines...xugxy.dpuf

http://infopub.sgx.com/Apps?A=COW_CorpAn...GskTGd8pnU

Swap ratio of 2.106 CIT units for every 1 KIT unit.
Acquiring Keppel Merlimau Cogen Plant.

The final yield will rise from 3.28 to 3.67cts.

Each of KIFM and CSIM believe the transactions to be DPU accretive4 for existing unitholders of KIT and CIT, respectively. In addition, prior to the completion of the Combination, existing CIT unitholders will receive a one-time distribution of S$30 million. After the completion of the Combination but before the equity fund raising, the Combined Trust will make a one-time S$30 million distribution to its expanded base of unitholders.

To fund the KMC Acquisition and its related expenses, an equity fund raising of up to S$525 million will be undertaken by issuing new units through a combination of placement to institutional and other investors, as well as a preferential offering to existing unitholders. The offering price, as well as further details of the equity fund raising, will be determined subsequently.

Keppel and Temasek intend to subscribe for their pro-rata entitlements under the preferential offering and do not intend to dispose of their units in the Combined Trust from the date of completion of the Combination to a date no earlier than 12 months following the completion of the equity fund raising exercise.

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Can someone tell me why issue out dividends then later ask for money back via preferential offering or equity placement?

The deal is better for CitySpring or Keppel Trust?

(18-11-2014, 10:57 PM)kelvesy Wrote: The deal is better for CitySpring or Keppel Trust?

It depends on how you see it.

If we look purely at annual dividend yield in the short term,
CIT dividend will rise from 3.28cts to 3.61cts.(pre KMC plant acquisition).
For Keppel, the current annual yield is around 7.82 cts. After restructuring, each KT will get 2.106 CIT which translates to 7.60cts.

(19-11-2014, 06:57 AM)yeokiwi Wrote:

(18-11-2014, 10:57 PM)kelvesy Wrote: The deal is better for CitySpring or Keppel Trust?

It depends on how you see it.

If we look purely at annual dividend yield in the short term,
CIT dividend will rise from 3.28cts to 3.61cts.(pre KMC plant acquisition).
For Keppel, the current annual yield is around 7.82 cts. After restructuring, each KT will get 2.106 CIT which translates to 7.60cts.

Definitely Cityspring gets the better deal.

According to page 13 of Cityspring slides,
Cityspring+KIT (no KMC acquisition)- DPU rises from 3.28 to 3.61

Notice for Keppel Infras slides page 15, there is no mention of DPU for Cityspring+KIT(no KMC acquisition).
They only show DPU for Cityspring+KIT+KMC. Why?

Good for Keppel Corp shareholders though as they have an enlarged base to inject their assets.

Cityspring slides (For convenience)
http://infopub.sgx.com/FileOpen/Presenta...eID=325197
Keppel infras slides
http://infopub.sgx.com/FileOpen/Slides-P...eID=325201

Its the best deal for 2 ITE cos...

Basically, when they cannot convinced existing and potential holders, they merged and confused existing holders further via a bigger platform, raised cash to buy a new asset.

Key considerations here - how attractive are the existing assets and the incoming assets...

The main benefit here is the cash infusion with a new asset with lower debts and immediate accretion to DPU...

Vested
CS

(19-11-2014, 07:40 AM)greengiraffe Wrote: Its the best deal for 2 ITE cos...

Basically, when they cannot convinced existing holders, they merged and confused existing holders further via a bigger platform, raised cash to buy a new asset.

Key considerations here - how attractive are the existing assets and the incoming assets...

The main benefit here is the cash infusion with a new asset with lower debts and immediate accretion to DPU...

Vested
CS

What it seems to me:
CIT+KIT only - Cityspring shareholder benefits
CIT+KIT+KMC - Both shareholder benefits

Vested in both