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Keppel Corp says sale of China marina project 'substantially complete'

KEPPEL Corporation expects to complete the 2.9 billion Chinese yuan (S$598 million) disposal of its stake in a China marina project on Monday after it collects the final S$7 million of the consideration amount.

Keppel, a conglomerate with businesses in property and rigbuilding, said that it has collected about 2.87 billion yuan of the consideration, denominated in about 451 million yuan and S$496 million. The remaining S$7 million was expected to be received on Monday.

"Given such payment, the company is of the view that the divestment is substantially complete," Keppel said in a filing before the market opened on Monday.

Wrapping up the sale of its 80 per cent stake in the Keppel Cove residential and marina development in Zhongshan City, China, has come with some difficulty for Keppel, which had faced attempts by the minority shareholder of the project to block the deal.

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Sunsea Yacht Club (Hong Kong), which held the remaining 20 per cent, in November 2017 filed a lawsuit to block the sale. That attempt was dismissed in late February 2018 by the Court of Appeal in Singapore.

Keppel Corp last traded at S$7.77 on Friday, up 11 Singapore cents.