UPDATE 1-Keppel Infrastructure to acquire majority stake in Australia's Ventura

(Add comments and details from statement in paragraphs 2-9)

SINGAPORE, Feb 5 (Reuters) - Keppel Infrastructure Trust (KIT) said on Monday that it will acquire an around 98.6% stake in Ventura Motors, the largest bus service business in Victoria, Australia, for an enterprise value of A$600 million ($390 million).

Ventura Managing Director Andrew Cornwall will remain the CEO, and retain a minority stake in the business, KIT said in a statement, adding that the acquisition will boost its assets under management to around S$8.7 billion ($6.47 billion) from S$8.1 billion, as of Jan. 2.

"Ventura is a good match for KIT's portfolio as it generates stable, recurring and predictable cash flows," said Kevin Neo, CEO of KIT's trustee manager Keppel Infrastructure Fund Management.

The deal is expected to be completed in the second quarter of this year, subject to conditions.

KIT said it intends to fund the investment through a combination of internal funds, equity or debt capital market issuances or external borrowings.

Headquartered in Melbourne, Ventura was established in 1924 and transports more than 42 million people annually, according to the statement.

Ventura, which has a fleet of nearly 900 buses, possesses the largest market share of public bus services in Victoria with more than 80% of its revenue derived from long-term government route services, KIT said.

"As the new owner, KIT will further the successes of the Ventura team as the business enters its next phase of growth, supporting the Victorian government's drive for zero-emission bus services," Neo said.

Ventura has 27 zero emission electric buses and aims to convert 25% of its fleet to electric buses by 2030, according to the statement.

($1 = 1.5389 Australian dollars)

($1 = 1.3448 Singapore dollars)

(Reporting by Yantoultra Ngui; Editing by Tom Hogue and Sherry Jacob-Phillips)