Hot stock: CDL up as much as 2.7% on Millennium Hilton Seoul divestment

SHARES of City Developments Limited (CDL) hit a 3-week high on Monday (Dec 13), after the property developer announced plans to divest Millennium Hilton Seoul.

Its indirect wholly-owned subsidiary on Friday (Dec 10) entered a sale and purchase agreement to sell the South Korea hotel and its adjoining land plot in South Korea for 1.1 trillion won (S$1.26 billion).

The counter reached a high of S$7.18 on Monday morning when the market opened, jumping 2.7 per cent or S$0.19 as at 9 am. The last time the counter traded at this level was on Nov 22.

By 9.24 am, shares of CDL were up 2 per cent or S$0.14 at S$7.13, with 548,800 shares changing hands. There were no married deals recorded, according to ShareInvestor data.

The Millennium Hilton Seoul is a 5-star, 22-storey hotel situated near Seoul's downtown business district. Its proposed sale, along with the adjoining land plot, marks CDL's fourth hotel divestment of the Millennium & Copthorne Hotels portfolio since its privatisation and the largest hotel divestment to date.

CDL is expected to recognise an estimated gain of S$529.73 million in its income statement post-deal, net of taxes and related transaction costs, it said.

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