Stocks In Focus SG (Keppel Corp, Keppel Infrastructure Trust, Tiong Seng Hldgs) – 19/11/14

Keppel Corporation proposed the disposal of a 51 percent stake in Keppel Merliau Cogen (KMC), which owns the Keppel Merlimau Cogen Plant, for $510 million. The property is a 1,300 megawatts combined cycle gas turbine power generation facility that is located on Jurong Island. In addition, a 15-year tolling agreement where KMC will be contracted by Keppel Electric for an amount no more than $108 million per year. Keppel Infrastructure Holdings (KI) will guarantee Keppel Electric’s payment obligation to KMC.

Keppel Infrastructure Trust (KIT) and CitySpring Infrastructure Trust (CIT) agreed to a merger where every KIT unit will be entitled to receive 2.106 CIT units. Upon completion, CIT will be renamed as KIT and the combined trust will be Singapore’s largest infrastructure-focused business trust. KI will remain as the sponsor of KIT.

Tiong Seng Holdings has been awarded a contract worth $132.4 million for the construction of a high-tech industrial facility. Expected to commence in November, the project comprises the erection of two blocks of eight and 11-storey high-tech industrial buildings, and will be located within the Telok Blangah Industrial Estate at Depot Road.

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