Keppel Entities Divest 80 Stake 800 Super 600 Million Valuation
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Actis, a leading growth market investor in sustainable infrastructure, has agreed to purchase an 80% stake in 800 Super Holdings from Keppel Asia Infrastructure Fund LP (KAIF) and Keppel’s infrastructure division. The deal values the Singapore-based waste management company at over $600 million.
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KAIF and Keppel currently hold 48% and 32% interests in 800 Super, respectively. They will receive their share of the consideration in cash. The remaining 20% is held by William Lee, 800 Super’s co-founder and CEO, who will be divesting a 10% stake to Actis and retaining a 10% stake following the transaction.
In 2022, the Keppel entities paid $380 million for their 80% stake in 800 Super. This marks KAIF’s first divestment, while Keppel is actively pursuing an asset monetisation program with the aim to divest between $10 to 12 billion by the end of next year. Prior to the 800 Super deal, Keppel had already divested $7.8 billion worth of assets since October 2020 when this strategy was laid out.
800 Super is one of three licensed public waste collectors in Singapore, providing municipal waste collection services. The company was previously listed on the SGX but was privatized in 2019.
Jopy Chiang, deputy chief investment officer and chief investment officer for infrastructure at Keppel, says, “The divestment of 800 Super demonstrates Keppel’s ability as a global asset manager and operator to identify unique opportunities and enhance and crystallize value from our investments at the right time.” He adds, “Over the past three years, we have leveraged our infrastructure expertise, working alongside 800 Super’s management team to optimize the company’s operations, expand its capabilities and market exposure, as well as strengthen its robust contract portfolio.” This has led to 800 Super achieving 20% EBITDA growth since Keppel’s acquisition in 2022 and is expected to generate an Internal Rate of Return in the mid-teens and capital gains equivalent to half the amount invested for KAIF’s limited partners upon divestment.
The transaction is scheduled for completion by the end of the year and is not expected to have a significant impact on Keppel’s net tangible asset per share or earnings per share for the current financial year.