Keppel Infrastructure Trust announced on Jun, 8 2026 that it has agreed to acquire an additional 39% interest in Keppel Merlimau Cogen (KMC) by purchasing the entire issued share capital of Kindle Energy from KCIF Investments. The proposed transaction is valued at up to 128.1 million Singapore dollars, including a contingent “ticker amount” of up to 7.2 million Singapore dollars that varies with the completion date.

Upon completion, Keppel Infrastructure Trust’s direct and indirect ownership in the 1,300-megawatt, hydrogen-ready combined cycle gas turbine plant on Jurong Island will rise from 51% to 90%, while Keppel Energy will retain the remaining 10%. The trust intends to fund the acquisition through a mix of internal resources and external borrowings.

Independent valuer Deloitte Singapore SR&T Pte. Ltd. assessed the market value of the 39% stake in KMC at between 106.5 million and 118.1 million Singapore dollars. The agreed base purchase price of 120.9 million Singapore dollars, plus the ticker amount, falls within this range.

The deal is expected to be financially accretive. On a pro-forma basis for the financial year ending Dec 31 2025, funds from operations would have risen 8% to 352 million Singapore dollars, while distribution per unit would have increased about 6% from 3.94 to 4.18 Singapore cents.

Unitholders will vote on the proposed acquisition at an extraordinary general meeting scheduled for Jun, 18 2026. An independent financial adviser, PrimePartners Corporate Finance Pte. Ltd., has opined that the transaction is on normal commercial terms and is not prejudicial to the interests of minority unitholders.

KMC operates under a 15-year capacity tolling agreement with Keppel Electric, providing stable fixed capacity payments and shielding the plant from market price volatility. The facility supplies more than 10% of Singapore’s electricity demand and is positioned to support the nation’s long-term energy security and decarbonisation goals.