KEPPEL Corporation Limited on Monday said that Third Dragon Development Pte Ltd, a wholly owned subsidiary held through Keppel Land Limited, has divested its entire 95 per cent interest in Jiangyin Yangtze International Country Club Co Ltd to Changzhou Wan Bang Qi Che Xiao Shou Fu Wu Co Ltd for 52.6 million yuan (S$10.8 million), subject to post-completion adjustments.
Jiangyin Yangtze International Country Club Co Ltd owns and operates the Jiangyin Yangtze International Country Club in Jiangyin, Jiangsu Province, China, Keppel Corporation said in a filing to the local bourse.
The aggregate consideration for the divestment was negotiated on a willing buyer willing seller basis, taking into account the operating environment of the golf course in China and the book value and net tangible asset of the Third Dragon Development equity interest, which as at Feb 29, 2016, were both negative S$832,000.
The group said that the divestment is in line with Keppel Land Limited's strategy to continually recycle assets for higher returns.
Following the divestment, Jiangyin Yangtze International Country Club Co Ltd is no longer a subsidiary of the company.
Keppel Corporation said that none of the directors or its controlling shareholders has any interest, direct or indirect, in the above transaction.
It added that the divestment is not expected to have any material impact on its earnings per share and net tangible asset per share for the current financial year.