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Keppel Land to start selective capital reduction exercise at S$4.24 per share
KEPPEL Land will kick start a selective capital reduction exercise aimed at cancelling all of the remaining shares that external shareholders still hold.
If approved, the S$47.9 million exercise will reduce the 0.73 per cent of the total number of shares held by various Keppel Land shareholders, apart from those held by Keppel Corporation. Keppel Corp currently owns 99.27 per cent of Keppel Land.
Keppel Land is offering a cash distribution of S$4.24 per share for these shareholders, it said in a release issued on Monday.
Keppel Land was delisted in July last year. This left shareholders with no public market to trade their shares.
To start the process, Keppel Land will be convening an extraordinary general meeting (EGM) to seek these shareholders' approval for the exercise. The special resolution requires the approval of at least 75 per cent of all shares voted by shareholders present and voting, said the company. Keppel Corporation will abstain from voting.
If this goes through at the EGM, Keppel Land will then seek approval and confirmation from the High Court. Once this approval is obtained, Keppel Corporation will then own 100 per cent of Keppel Land.
However, if the exercise is not approved, all of these external shareholders will continue to hold their shares of Keppel Land. There will be no partial offer for those who assented to the exercise.