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Summons for interim relief against Keppel's unit dismissed

KEPPEL Corporation Limited is allowed to proceed with a planned 2.9 billion yuan (S$0.6 billion) disposal of its stake in a China marina project, after a minority shareholder in the project attempted to block the sale through legal proceedings in Singapore.

On Friday, Keppel Corp announced that the High Court had dismissed Sunsea Yacht Club (Hong Kong) Company Limited's summons for interim relief against Keppel's wholly owned subsidiary Keppel Land China Ltd (KLCL) and KLCL's fully owned unit Keppel China Marina Holdings (KCMH).(See clarification note)

The costs will be awarded to KLCL and KCMH.

KCMH owns 80 per cent of a joint venture that owns and develops Keppel Cove, a residential and marina development in Zhongshan City, China, with Sunsea owning the remaining 20 per cent.

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KLCL had signed an agreement in October to divest its entire stake in KCMH to Delight Prime, a unit of Hong Kong-listed Logan Property, for 2.9 billion yuan.

If the deal goes through, KLCL would be able to recognise a gain of about S$290 million from the divestment.

Keppel Corp closed eight Singapore cents lower at S$7.53 on Friday.

 Clarification note: A previous version of the story said that the High Court had dismissed Sunsea Yacht Club (Hong Kong) Company Limited's writs of summons against Keppel's wholly owned subsidiary Keppel Land China Ltd (KLCL) and KLCL's fully owned unit Keppel China Marina Holdings (KCMH). It should be the summons for interim relief, instead of writs of summons. The article has been revised to reflect that.

 

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