Wednesday, November 19, 2014

CitySpring-Keppel Infrastructure Trust Merger

CitySpring and KIT have announced a merger on Tuesday after a 2-day trading halt since last Friday post-market close, pathing the way to the largest listed utility trust in Singapore (subject to approval of CIT and KIT uniholders at their respective EGMs).

In Summary, the highlights of the merger includes:
  • CIT to purchase all of KIT's business and assets with new units in CIT based on a fixed swap ratio of 2.106 CIT units per KIT unit. 
  • KIT will carry out a distribution-in-specie of CIT units to KIT unitholders
  • CIT will be renamed "Keppel Infrastructure Trust"
  • Distribution of $0.0198 DPU to CIT uniholders before completion of merger (expected in 2Q 2015)
  • Distribution of $0.0105 DPU to CIT uniholders after completion of merger.
  • Keppel (22.9%) and Temasek (19.97%) will be the 2 largest uniholders/sponsor.

Market seems to like the merger, judging from the jump in share prices for both trusts after the trading halt was lifted.

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