Keppel has named Actis as the preferred bidder in an auction of 800 Super, a Singaporean waste management company, according to three sources familiar.

I Squared, Macquarie, and Stonepeak were also bidding for the company. Actis is being advised by Deutsche Bank.

Actis is likely bidding for 800 Super through its Long Life infrastructure business, making it a strong contender due to the strategy’s relatively low cost of capital, one of the sources said. The British manager is deploying from its second fund in the Long Life strategy, which targets brownfield assets across power, transport, and logistics in growth markets globally.

Talks have also begun with banks to pitch financing terms to the winning bidder, the same source said.

Keppel was initially only selling its 80% stake, with Citi as its advisor. Sources earlier this month said that William Lee, 800 Super’s co-founder and CEO, might also sell his 20%, potentially leading to the sale of the entire company.

800 Super has an annual EBITDA of approximately USD 30m, a source previously told this news service. He expected the company to sell for 10x-12x EBITDA.

In August 2022, Keppel Asia Infrastructure Fund (KAIF) and Keppel Infrastructure Holdings jointly invested SGD 304m (USD 235.5m) for their controlling stake in 800 Super.

800 Super provides waste management, waste treatment, integrated public cleaning, and other environmental services. It is one of three licensed public waste collectors in Singapore and provides public upkeeping services, as well as waste removal and recycling services for commercial and industrial customers.

The company owns and operates a waste treatment plant in Tuas with a daily capacity of 568 tonnes; a 2.88 MW biomass co-generation plant and a 400 tonne biomass fuel preparation facility.

Actis declined to comment. Keppel did not respond to requests for comment by press time.

[Editor’s note: The article has been updated post-publication to note that Actis declined to comment.]