SINGAPORE (May 20): Keppel Infrastructure Trust is planning to raise gross proceeds of $525 million by selling up to 1.03 billion new units to fund the acquisition a 51% stake in Keppel Merlimau Cogen.

The equity fund raising will comprise a placement of up to 812.7 million units at between 51 cents and 55 cents to a limited number of institutional and other qualified investors.

The other portion will be non-renounceable preferential offering of 218.9 million preferential offering units at between 50.5 cents and 54.5 cents on the basis of one preferential offering unit for every 13 existing units held by unitholders.

The adjusted volume-weighted average price for the full market day on May 19 and on 20 May until 9.33 a.m. was 55.41 cents per unit.

Credit Suisse (Singapore) Limited, DBS Bank and UBS AG, Singapore Branch have been appointed as joint lead managers, bookrunners and underwriters for the equity fund raising.

After completion, Keppel Infrastructure Fund Management will also declare a special cash distribution of $30 million in aggregate to unitholders of which $16 million will be distributed to CIT unitholders and the balance of $14 million distributed to pre-acquisition KIT unitholders, or 1.05 cents per unit.