Tee Land to sell shares in Chewathai Public Co at a loss, raising S$13.1m in net proceeds

TEE Land is disposing its entire 31.88 per cent stake in Thailand-listed Chewathai Public Company for a net loss, and plans to redeploy the cash on opportunities in Singapore's residential property market.

Tee Land will record a net loss of 149.35 million baht (S$6.15 million) from the disposal, and expects to receive net proceeds of 318.03 million baht from the sale of shares to Chartchewa Company.

Of Tee Land's 239.1 million shares in Chewathai, it will sell 88 million to Chartchewa for 117.04 million baht, or 1.33 baht per share on Jan 23, 2018.

The remaining 151.1 million shares will be sold for the same price upon the exercise of the call option or put option later next year.

The sale price was based on Chewathai's market cap of 982.50 million baht and net asset value of 978.25 million baht as at Sep 30.

Once the share sale is complete, Tee Land's pro forma loss per share will widen.

Tee Land's shareholders will receive a circular containing further details on the proposed disposal before an extraordinary general meeting is held.