Keppel consortium takes remaining 50% stake in Cleantech Solar Asia for $157m

The resultant increased stake in Cleantech's asset company will accelerate Keppel's plans to grow its renewables business. PHOTO: CLEANTECH SOLAR/FACEBOOK

SINGAPORE (THE BUSINESS TIMES) - A consortium comprising Keppel Corp, Keppel Asia Infrastructure Fund (KAIF) and a co-investor of KAIF will acquire the remaining 50 per cent stake in Cleantech Solar Asia (CSA) for US$115 million (S$157 million).

The resultant increased stake in Cleantech's asset company will accelerate Keppel's plans to grow its renewables business, the company said in a statement on Tuesday (March 15).

Keppel will satisfy its share of the consideration, which is US$69 million, in cash using internal resources, the company said.

The partners are conducting the purchase through Cloud Alpha, which is 60 per cent owned by Keppel through Keppel Renewable Investments and 40 per cent owned by KAIF and its co-investor.

The consortium is buying the stake from CEF 200 BV, which is owned by a fund managed by Climate Fund Managers.

The consortium had on Dec 13 last year announced that it was acquiring a 51 per cent stake in Cleantech Renewable Assets (CRA), which in turn owns 50 per cent of CSA.

Following the latest transaction, the consortium's collective effective stake in CSA - which is CRA's asset company - will be pushed up from 25.5 per cent to 75.5 per cent.

Of the US$115 million price tag, a portion will be paid on completion of the transaction, with the remainder being deferred to Dec 31, 2024.

The consideration was arrived at after negotiations on a willing-buyer, willing-seller basis and factoring in the strategic merits, development pipeline and platform value of CSA, as well as synergy with the CRA transaction and other prevailing market conditions.

This transaction is expected to close in the first half of 2022 and is subject to the completion of the CRA deal, as well as certain other conditions including regulatory approvals.

Keppel chief executive Loh Chin Hua said: "The increased stake in Cleantech's solar asset portfolio is testament to Keppel's commitment to grow its renewables business as part of Vision 2030.

"Increasing our additional stake in Cleantech's solar assets through the acquisition of our stake in CSA will also increase the Keppel Group's exposure to Cleantech's growing solar business, and in turn strengthen the ability to create collaboration and synergy opportunities with the rest of the Keppel Group."

Shares of Keppel were trading up three cents, or 0.5 per cent, at $6.12 at 9.16am on Wednesday.

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