Keppel Infrastructure Trust (formerly known as Cityspring Trust)

[Nick]

Keppel creates the largest Singapore infrastructure-focused business trust

http://www.kepinfratrust.com/news_item.aspx?sid=5387

Merger of KIT and Cityspring has been completed resulting in the formation of a much larger (and less geared) trust with a well diversified portfolio of cash generating assets. It will be interesting to see how this pans out in the future.

(Not Vested)

[Curiousparty]

Just curious and learning from everyone here.

1. Is there any risk of "strategic assets" such as water supply plant (e.g Singspring plant), incineration plant, tele network infra (e.g. OpenNet) falling into the hands of foreign entities?


2. If one trust fails (e.g. OpenNet), will the other trusts be impacted? if so, in what ways?

many tks.

[opmi]

Power plants also sold already to YTL & Huaneng.
What strategic assets?

[Curiousparty]

I am referring to the assets under the combined trust.
http://www.kepinfratrust.com/portfolio.html

Keppel Infrastructure Trust has the following infrastructure businesses in its portfolio:
1.Keppel Merlimau Cogen Plant (in the process of acquiring)
2.Senoko Waste-to-Energy Plant
3.Keppel Seghers Tuas Waste-to-Energy Plant
4.Keppel Seghers Ulu Pandan NEWater Plant
5.SingSpring Desalination Plant
6.City Gas
7.Basslink
8.DataCentre One
9.CityNet

Could there be any possibility of foreign entities owning >50%, resulting in significant control?

Are there any safeguards in place?

tks.

Power plants also sold already to YTL & Huaneng.
What strategic assets?

[Nick]

I am referring to the assets under the combined trust.
http://www.kepinfratrust.com/portfolio.html

Keppel Infrastructure Trust has the following infrastructure businesses in its portfolio:
1.Keppel Merlimau Cogen Plant (in the process of acquiring)
2.Senoko Waste-to-Energy Plant
3.Keppel Seghers Tuas Waste-to-Energy Plant
4.Keppel Seghers Ulu Pandan NEWater Plant
5.SingSpring Desalination Plant
6.City Gas
7.Basslink
8.DataCentre One
9.CityNet

Could there be any possibility of foreign entities owning >50%, resulting in significant control?

Are there any safeguards in place?

tks.

Power plants also sold already to YTL & Huaneng.
What strategic assets?

How could fully owned assets fall into the hands of another without KIT choosing to sell it? I don't quite understand your question

In theory, each asset's debt should be non-recourse to the Trust.

[Curiousparty]

The 2 largest shareholders of KIT own less than 50%. i.e. the remaining portion is in public hands.
http://sbr.com.sg/building-engineering/n...m-2b-trust

"Upon completion of the combination, Keppel Corp will become the largest unitholder with 22.9% ownership in the trust. Meanwhile, Temasek will become the second-largest unitholder with 19.97% ownership in the trust"

E.g. Can a foreign entity investor come in and buy over say 51% of the combined trust and
a. Sack the trustee managers and replace them with "foreign talents"?
b. Also sack all the operators (e.g. Keppel Seghers and Hyflux) and replace them with "foreign talents"?

I am referring to the assets under the combined trust.
http://www.kepinfratrust.com/portfolio.html

Keppel Infrastructure Trust has the following infrastructure businesses in its portfolio:
1.Keppel Merlimau Cogen Plant (in the process of acquiring)
2.Senoko Waste-to-Energy Plant
3.Keppel Seghers Tuas Waste-to-Energy Plant
4.Keppel Seghers Ulu Pandan NEWater Plant
5.SingSpring Desalination Plant
6.City Gas
7.Basslink
8.DataCentre One
9.CityNet

Could there be any possibility of foreign entities owning >50%, resulting in significant control?

Are there any safeguards in place?

tks.

Power plants also sold already to YTL & Huaneng.
What strategic assets?

How could fully owned assets fall into the hands of another without KIT choosing to sell it? I don't quite understand your question

In theory, each asset's debt should be non-recourse to the Trust.

[CityFarmer]

CityNet shareholding, is governed by IDA, base on a respective Act. CityNet shareholding structure can not be changed, without approval, thus protected.

(sharing the only known case within the list)

[Nick]

The 2 largest shareholders of KIT own less than 50%. i.e. the remaining portion is in public hands.
http://sbr.com.sg/building-engineering/n...m-2b-trust

"Upon completion of the combination, Keppel Corp will become the largest unitholder with 22.9% ownership in the trust. Meanwhile, Temasek will become the second-largest unitholder with 19.97% ownership in the trust"

E.g. Can a foreign entity investor come in and buy over say 51% of the combined trust and
a. Sack the trustee managers and replace them with "foreign talents"?
b. Also sack all the operators (e.g. Keppel Seghers and Hyflux) and replace them with "foreign talents"?

I am referring to the assets under the combined trust.
http://www.kepinfratrust.com/portfolio.html

Keppel Infrastructure Trust has the following infrastructure businesses in its portfolio:
1.Keppel Merlimau Cogen Plant (in the process of acquiring)
2.Senoko Waste-to-Energy Plant
3.Keppel Seghers Tuas Waste-to-Energy Plant
4.Keppel Seghers Ulu Pandan NEWater Plant
5.SingSpring Desalination Plant
6.City Gas
7.Basslink
8.DataCentre One
9.CityNet

Could there be any possibility of foreign entities owning >50%, resulting in significant control?

Are there any safeguards in place?

tks.

Power plants also sold already to YTL & Huaneng.
What strategic assets?

How could fully owned assets fall into the hands of another without KIT choosing to sell it? I don't quite understand your question

In theory, each asset's debt should be non-recourse to the Trust.

Oh you are talking about hostile takeovers of the business trust itself. Well, if anyone walks in and offer a good deal to privatize the Trust, why would shareholders say no ? I don't believe there are any protectionist laws in Singapore preventing foreigners from owning infrastructure assets - YTL owns power plants. So it will be a purely commercial transaction - can they cough up enough money to entice unitholders to sell to them.

To remove the Trustee Manager in a business trust, one needs 75% + 1 vote in an EGM. This makes it quite impossible unless Keppel chooses to divest its stake to this foreign suitor.

Thus far, there has been no takeovers of a REIT / business trust yet.

[butcher]

If there are so called elements of protectionists who wants to keep the assets in Sg hands as per your opinion, like what u mentioned, Keppel + Temasek owns 42.87%, I think these 2 can easily buy up another 7.13% given their muscles.

Also even if a foreign player comes in and wanna privatise and offer a good price to shareholders, if Sg really wanna play the protectionist cards and not resorting to regulations, the 2 parties as your mentioned can counter-offer also which always happens in commercial setting.

[Curiousparty]

Power plants also sold already to YTL & Huaneng.
What strategic assets?

Electricity market has already liberalized in the early 2000s. (don't really care about this segment)

What I am referring to is other segments such as water production, used water treatment, incineration services and backbone telecom network, etc.

tks.