Keppel consortium acquires 80% stake in 800 Super for $304 million

800 Super owns and operates a waste treatment plant in Tuas, which can treat 568 tonnes of controlled waste per day. PHOTO: KEPPEL CORPORATION LIMITED 

SINGAPORE (THE BUSINESS TIMES) - Keppel Asia Infrastructure Fund (KAIF) and Keppel Infrastructure Holdings (KI) are jointly acquiring an 80 per cent interest in Singaporean environmental services company 800 Super for $304 million.

The deal values 800 Super at $380 million, with KAIF and KI holding a 48 per cent and 32 per cent interest respectively post-purchase, said Keppel Corporation, the parent company of Keppel Capital, under which KAIF comes, and KI, in a bourse filing on Wednesday evening (Aug 24).

The co-founder of 800 Super, Mr William Lee, will hold the remaining 20 per cent stake and continue to be the company's chief executive officer.

Founded in 1986, 800 Super is an environmental solutions provider and has four main operating segments - waste management, waste treatment, integrated public cleaning and other environmental services.

It is one of three licensed public-waste collectors in Singapore, providing municipal waste collection services, as well as waste removal and recycling services for commercial and industrial customers.

800 Super owns and operates an integrated waste-treatment plant in Tuas, a biomass co-generation plant and Singapore's largest biomass fuel-preparation facility. It was delisted from the Singapore Exchange's Catalist board in August 2019.

Keppel's statement said the consortium believes 800 Super is well-positioned to realise its market potential by unlocking the latent capacity in its waste-treatment segment to meet increasing demand in the sector.

The transaction is also in line with Keppel's Vision 2030, which places sustainability at its heart.

Ms Christina Tan, CEO of Keppel Capital, said "800 Super's strong market position will enable it to capture more opportunities as Singapore intensifies its sustainable waste management efforts".

Ms Cindy Lim, CEO of KI, added that the acquisition will complement and broaded the range of environmental services KI now offers.

Shares of Keppel ended Wednesday at $7.01, down 0.3 per cent, before the announcement.

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