For illustrative purposes, the trust has assumed $178.8 million or 31.3% of total acquisition cost. The remaining $391.8 million (68.7%) will be funded through the issuance of about 849.3 million new units, Lim highlights.
OCBC Investment Research analyst Ada Lim has maintained her “buy” call on Keppel Infrastructure Trust (SGX:A7RU
) (KIT) with a fair value estimate of 59.5 cents after the trust announced that it is acquiring the largest bus service provider in Victoria, Australia, Ventura Motors, for A$600 million.
The acquisition will likely be funded through a combination of internal resources, debt, and equity. Lim notes that KIT could potentially list an additional 1.06 billion new units for net proceeds of up to $490.4 million via a private placement or preferential offering.
