Keppel expands into South Korean waste management

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Keppel Infrastructure Fund Management Pte Ltd (KIFM), the Trustee-Manager of Keppel Infrastructure Trust (KIT), Keppel Asia Infrastructure Fund LP (KAIF) and Keppel Infrastructure Holdings Pte Ltd (KI) have announced a joint acquisition of a 100% stake in a South Korean waste management company Eco Management Korea Holdings Co., Ltd. through a special purpose vehicle (SPV). KIT will hold a 52% interest in the SPV, while KAIF and KI will hold a 30% and 18% interest respectively. 

Eco Management Korea Holdings (EMK) is an integrated waste management services provider in South Korea. EMK operates 6 waste-to-energy (WTE) plants and 5 sludge drying facilities, which have an incineration capacity of 404 tonnes per day. Moreover, the company refines 154 tonnes of oil waste per day, as well as manages and owns a landfill with 1.5 million m3 capacity.

The investment is valued at KRW626.1 billion (US$482 million). The acquisition is expected to be finalized before the end of 2022. KIT, KAIF and KI will fund the acquisition proportionally according to their share in the SPV. KIFM will fund the investment with a combination of internal sources of funds, equity and/or debt capital market issuances and/or external borrowings.

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