Press releases

Keppel Integrated Engineering Limited (KIE) will acquire the entire share capital of First DCS Pte Ltd (First DCS) from SLI Holdings Pte Ltd (SLI), a wholly-owned subsidiary of JTC Corporation (JTC) for a cash consideration of approximately S$88 million.

KIE is selected as the preferred bidder in JTC’s tender for the sale of First DCS. The acquisition is expected to be completed by 3 December 2009. The consideration was agreed by the parties on a willing seller, willing buyer basis.

As the largest district cooling systems provider in Singapore, First DCS currently services Changi Business Park, Biopolis@one-north and Woodlands Wafer Fab Park with a total contracted capacity exceeding 35,000 RT.

District cooling systems distribute thermal energy in the form of chilled water or other media from a central source to multiple buildings through a network of underground pipes, which eliminates the need for separate systems in individual buildings.

District cooling systems enable buildings to consume 10-20% less energy than those using conventional air conditioning and are therefore considered environmentally friendly. Its energy-efficient and space-saving attributes make it suitable to address the needs of city centres, large production plants, hospitals and property developments.

Deputy Chairman of KIE, Mr Michael Chia, said, “The transaction complements and broadens KIE’s existing capabilities in environmental technology solutions and facilities management. First DCS will not only provide an additional recurring income stream for KIE, but also allow KIE to explore more opportunities arising from the drive for more environmentally friendly and energy-efficient solutions in Singapore and the region.

“We are committed to deliver excellent service and maintain our long standing partnerships with all of First DCS’ customers, including JTC, who remains a major customer.”

Based on the audited balance sheet of First DCS as at 31 March 2009, the net asset value of First DCS was S$63,661,000. Mr Joseph Ng Moi Boon will remain as Chief Executive Officer and Executive Director of First DCS.

The above-mentioned acquisition is not expected to have material impact on the net tangible assets or earnings per share of Keppel Corporation Limited for the current financial year.


About Keppel Integrated Engineering (KIE)

KIE is a wholly-owned subsidiary of Keppel Corporation Limited.

KIE and its business units have been established for over 30 years, providing a wide range of environmental solutions and engineering services globally. It has an extensive track record of successful turnkey projects, EPC (engineering, procurement, and construction), DBOO (design, build, own, and operate), O&M (operation and maintenance) and investments projects in Europe, North and South Americas, Asia Pacific, China, Africa and the Middle East.

Its wholly-subsidiary Keppel Seghers is a leading global environmental technology company providing total solutions in waste-to-energy (WTE), water & wastewater treatment and biosolids treatment. In the Middle East, Keppel Seghers is implementing contracts worth approximately S$1.7 billion for the Ministry of Municipality and Urban Planning of Qatar in EPC and O&M of an integrated solid waste management facility which can treat 2,300 tonnes of waste per day.

Keppel Seghers is also implementing QR3.6 billion (approximately S$1.5 billion) project for the design, build, operation and maintenance of a wastewater treatment and reuse and sludge treatment plant in Qatar. In China, it is the market leader for imported WTE solutions, having captured 60% of the market share.

KIE’s other subsidiaries include Keppel FMO, Keppel Sea Scan, and Keppel Prince Engineering.

For further information, please contact

Say Huan Yuan (Mr)
Executive
Group Corporate Communications
Keppel Corporation Limited
Tel: 6413 6297
Email: huanyuan.say@kepcorp.com

(From left) Mr Seah Kee Pok, Director of SLI Holdings, Mr Manohar Khiatani,CEO, JTC Corporation, Mr Tong Chong Heong, Chairman, KIE, and Mr Chua Chee Wui, CEO, KIE, giving a toast at the signing ceremony.