Keppel Infrastructure Trust (KIT) is the merger of K-Green and Cityspring in the past.
K-Green is very clean, no debt but its assets are concession based and the highest contributing had a concession of 10 years. Cityspring turned out to be 50% leveraged and didn’t performed as what retail investors thinks it should.
Worse, they made an acquisition in Basslink in Australia that was nothing short of a disaster.
So the merger of K-Green and Cityspring helps both sides, in that it gives the entity a “longer WALE” and less leverage.
KIT just announced that they are proposing to shareholders to acquire IXOM a chemical specialty company in Australia from Blackstone Group for A$1.1 billion dollars.
The transaction itself is not going to be very yield accretive, given any of the financing methods.
However, it does help the business trust reduce its dependency on some concession based source of …