SINGAPORE (Oct 30): Keppel Infrastructure Trust (KIT) is reportedly named the official preferred bidder for IXOM, Blackstone’s Australian chemicals business formerly owned by multinational corporation Orica.

According to the Australian Financial Review, a recent JPMorgan auction sealed the deal, which is expected to rack up some A$1 billion ($1 billion).

Potential buyers at the auction were told IXOM would make A$139 million in EBITDA the next financial year to continue the 5.1% per-annum growth since Blackstone acquired the asset in 2015.

For the financial year ended Sept 2018, the chemicals business was said to make A$133 million in EBITDA.

IXOM’s industry & speciality chemicals divisions and water treatment & manufacture chemicals divisions account for 53% and 47% of the business, respectively, according to AFR.

News of KIT’s likely acquisition of IXOM was announced in mid-Oct when the trust was said to have been nearing an agreement with Blackstone.

Investment bank Lazard was appointed to advise KIT on the deal, according to AFR.

Units in KIT closed 3.2% lower at 46 cents on Monday.