Three of Keppel Corporation’s BN4 subsidiaries, Keppel Renewable Energy (KRE), KRE Anchorage and Keppel Renewable Energy Australia (KREA), have been sued. The civil action was in connection with a solar farm being developed by KRE in Queensland, Australia.
The proceedings were commenced by Sunshine Energy Australia Pty Ltd and Australia Energy Group against Anthony John Youssef, Harlin Solar and the KRE subsidiaries.
On Dec 22, 2020, Keppel announced that KRE Anchorage was acquiring 45% of the ordinary shares in the capital of Harlin Solar from Youssef. Harlin Solar is a special purpose entity that was established in August 2020 to develop, construct and operate a solar farm in Queensland. KRE Anchorage would lead the development and management of the construction and operation of the Harlin Solar Farm.
According to Keppel, the applicants are claiming up to A$66.5 million ($59.3 million) against Keppel’s subsidiaries under various causes including a breach in the mutual confidentiality agreement that was entered between KRE and Australia Energy Group on March 24, 2020. It was alleged that KRE Anchorage was “knowingly involved” in KRE’s breach of the agreement.
The applicants are also alleging that KREA had entered into an agreement with Harlin Solar concerning the development of a solar farm, and that the respondents benefitted from the agreement to the disadvantage of the applicants.
The KRE subsidiaries have denied the allegations and will “vigorously defend” the claim, says Keppel.
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It adds that the proceedings will not have a material impact on its operations and its overall financial performance.
Shares in Keppel closed 19 cents higher or 3.03% up at $6.46 on April 21.
