FRASERS Centrepoint Limited (FCL) said its wholly owned Thai subsidiary, Frasers (Thailand) Pte Ltd, has entered into agreements to sell its entire interests in two other companies for a total of 2.28 billion baht (S$91.2 million) in cash.
It is selling a 49 per cent stake in Riverside Homes Development Co Ltd (RHD) to SMJC Real Estate Co Ltd (SMJC) for 834.88 million baht and a 40.45 per cent stake in Krungthep Land Public Company Limited (KLand) to Golden Land Property Development Public Company Limited for 1.44 billion baht.
FCL said the divestments are part of its strategy to rebalance its portfolio with a view to increase its recurrent earnings and reduce reliance on trading profits from the development business.
RHD and KLand are both in the business of developing residential properties for sale in Bangkok.
The divestments are not expected to have any material effect on the net tangible assets per share or earnings per share of the group for the current financial year.
FCL said the divestment values take into account the fair market valuations of its stakes in RHD and KLand, at S$32.9-36.5 million and S$53.3-58.2 million, respectively. The valuations were conducted by EY Corporate Services.