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CITY Developments Ltd (CDL) has inked an agreement to sell its controlling stake of 52.52 per cent in Hong Kong-listed City e-Solutions Limited (CES) to China Tian Yuan Manganese Limited for HK$566.4 million (S$98.2 million).
The share purchase agreement signed on July 19 follows several announcements previously (as early as April this year) that discussions on the possible transaction were ongoing.
The sale by CDL's wholly owned subsidiaries to China Tian Yuan Manganese, an independent unrelated third party, at HK$2.82 per CES share is a premium of 119 per cent over the audited consolidated net asset value attributable to shareholders of HK$1.2867 per share as at end December 2015 and a 4 per cent premium over the volume weighted average price of HK$2.7038 on July 18.
Following the completion of the transaction, CDL will cease to have any interest in CES.
The disposal is not expected to have any material impact on CDL's net tangible assets or earnings for the financial year ending Dec 31, 2016.
CDL shares gained 11 Singapore cents or 1.3 per cent to end on Friday at S$8.88.