Keppel divests whole stake in Shanghai unit that developed luxury housing
Janice Lim
KEPPEL Land, a subsidiary of Keppel Corporation , will be divesting its entire stake in Shanghai Jinju Real Estate Development for 967 million yuan (S$190 million) to Shanghai Dongyuan Real Estate Development.
Out of the 967 million yuan, 456 million yuan will be paid to Shanghai Maowei, a subsidiary of Keppel Land, for the sale of its shares.
Another 306 million yuan will be paid to a company related to Shanghai Maowei as repayment for loans it had extended to Shanghai Jinju.
Shanghai Jinju, which owns high-end residential development Sheshan Riviera in Shanghai, will pay 205 million to Shanghai Maowei as a form of dividend.
The total sum will be paid in three instalments. The first installment of 20 per cent has already been paid. The second instalment, which accounts for 75 per cent of the deal amount, will be made upon the transfer of the shares.
The last installment of 5 per cent, which has been secured by a cashier’s order, is to be paid by the fourth quarter of this year.
The planned divestment is in line with Keppel’s 2030 vision to monetise its assets and unlock capital which can be channelled towards new growth opportunities. The divestment is expected to be completed by the fourth quarter of this year.
Keppel Corp’s share price rose 0.2 per cent, or S$0.01, to close at S$6.60 on Wednesday.
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