Temasek-backed CitySpring said to weigh merger with Keppel unit

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.

Keppel Infrastructure Trust has a market value of $655 million and is 49 per cent owned by Keppel Corp., whose largest shareholder is Temasek, according to Bloomberg data.