A consortium comprising Keppel Asia Infrastructure Fund LP (KAIF) and Keppel Infrastructure will jointly acquire an 80% stake in the Singapore-based environment services company 800 Super for S$304 million ($217 million).
The deal values 800 Super at S$380 million, with KAIF and Keppel Infrastructure holding a 48% and 32% stake respectively.
800 Super’s co-founder and CEO William Lee will hold the remaining 20% and continue as 800 Super’s CEO after the investment, Keppel detailed in a regulatory filing on Wednesday.
Currently, Lee holds a 20% indirect interest in 800 Super, which will be acquired by the Keppel consortium. Once the acquisition is completed, Lee will reinvest all sales proceeds to subscribe for a new 20% indirect interest in 800 Super.
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 the three licenced public-waste collectors in Singapore, providing municipal waste collection services, waste removal, and recycling services for commercial and industrial customers.
The company owns and operates an integrated waste treatment plant in Tuas, a biomass co-generation plant as well as a biomass fuel preparation facility. Formerly on the Catalist Board of the Singapore Exchange, 800 Super delisted in August 2019.
The Keppel consortium believes that 800 Super will be a strong addition to the group as it 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 in line with Keppel’s Vision 2030, which places sustainability at the core of the group’s strategy and marks KAIF’s first investment in the Singapore environmental services sector.
Shares in Keppel Corporation closed down 2 cents, or 0.28%, to S$7.01 on Aug 24 on SGX.