Keppel Infrastructure Trust : Proposed Acquisition of a Leading Integrated Waste Platform in South Korea

Proposed Acquisition of a Leading Integrated Waste Platform in South Korea

8 August 2022

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Proposed acquisition of a leading waste platform in South Korea

Acquisition marks KIT's expansion into South Korea

• Jointly investing with Keppel entities to acquire
  Eco Management Korea (EMK), with KIT holding 52% majority interest
• EMK is a leading integrated waste management player in South Korea with diversified business operations across solid waste management (incl. incineration), liquid waste management and landfill

52%			Investor Holdco
30%			100%

18%

Key Terms of Proposed Acquisition

1. Based on an exchange rate of S$1 : KRW 940.

Seller

Purchase

Consideration

Proposed Funding

Expected Completion

IMM Investment and Korea Development Bank Private Equity

Total: KRW 626.1b (approx S$666.1m1)

KIT's interest: KRW 325.6b (approx S$346.4m1)

Combination of internal sources of funds, equity and/or debt capital market issuances and/or external borrowings

2H 2022, subject to condition precedents2

2. Including the consummation of the spin-off and transfer of all issued and outstanding equity interests in Shindaehan Refined Fuel Co., Ltd. (Shindaehan) and other related assets and liabilities to a new subsidiary of the Seller. Shindaehan is in the business of wastewater treatment and waste oil refining and will not be part of the Target Group to be acquired under the SPA.

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EMK: South Korea's leading integrated waste platform

Defensive business backed by blue chip customers

Solid

3rd largest

incineration capacity in South Korea (404 tons/day)

Liquid

Largest

waste oil refining player in South Korea (154 tons/day)

Landfill

4th largest

landfill capacity in South Korea, and 2nd largest in Yeongnam area

Solid

• Capable of treating both general and designated waste
• High treatment volume and unit price in Seoul Metropolitan
• The only integrated waste management platform capable of sludge drying

Liquid

• Major waste acid/alkali neutralization player
• Extensive customer base due to its location in Seoul Metropolitan Area

Landfill

• Commencement of business in Jan 2022
• Potential expansion in capacity

Key customers of EMK:

LG, Samsung, Coupang, K Water, KCC Glass Corporation, Hanil Cement, Korea Advanced Nano Fab Center,

Korea Electronics Technology Institute, Cheongju City and Jincheon-Gun

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EMK: Essential service provider with nationwide coverage

Strong presence in key regions including the Seoul Metropolitan Area and Yeongnam

Incineration facilities

in Seoul Metropolitan, Chungcheong and Honam

Sludge dry facilities

in Seoul Metropolitan, Chungcheong and Honam

Landfill site

in Yeongnam with remaining capacity of 1.5 million m3 (useful life of approx. 10 years)

Businesses strategically located in key industrial regions

Korea Environment Development

(Ansan)

Vinotec
(Ansan)			Green Energy
	Seoul Metropolitan		(Ansan)
Top Eco
(Hwaseong)
	Chungcheong		KD Environment
Dana Energy Solution			(Gyeongju)
(Cheongju)
Honam			EMK Ulsan
EMK SK	Yeongnam	(Ulsan)
(Iksan)
Solid	Liquid	Landfill

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