Keppel Entities Divest 80 Stake 800 Super 600 Million Valuation
After jointly acquiring 80% of 800 Super Holdings, a leading waste management company, back in 2018 for $380 million, Keppel Asia Infrastructure Fund LP (KAIF) and Keppel’s infrastructure division are now divesting their combined stake to Actis, a leading growth market investor. The deal values the company at over $600 million, and KAIF and Keppel will be receiving their share of the consideration in cash.
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Actis, which has raised some US$26 billion since inception, has agreed to purchase the 80% stake held by KAIF and Keppel, with the transaction set to be completed by the end of the year. As part of the deal, KAIF and Keppel will hold 48% and 32% interests respectively in 800 Super, while the remaining 20% is held by William Lee, the company’s co-founder and CEO. Lee will be divesting a 10% stake to Actis and retaining a 10% stake following the transaction.
“The divestment of 800 Super demonstrates Keppel’s ability as a global asset manager and operator to identify unique opportunities as well as enhance and crystallise value from our investments at the right time,” says Jopy Chiang, deputy chief investment officer and chief investment officer of Keppel’s infrastructure division. “Over the past three years, we 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.”
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800 Super is one of three licensed public waste collectors in Singapore and provides municipal waste collection services. The company was previously listed on the SGX but was privatized in 2019. Since Keppel’s acquisition in 2018, 800 Super has seen a 20% growth in EBITDA 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.
“Keppel is on an active asset monetization program, with an eye to divest between $10 and 12 billion by the end of next year. Prior to this 800 Super deal, Keppel had already divested $7.8 billion worth of assets since October 2020, when this strategy was laid down,” says Chiang.
The transaction is not expected to have any material impact on Keppel’s net tangible asset per share or earnings per share for the current financial year. This divestment marks KAIF’s first since its formation and is part of Keppel’s broader goal of divesting between $10 and 12 billion in assets by the end of next year.