Keppel Land to divest Myanmar hotel project for US$57.4 million
KEPPEL Land and its subsidiary Double Peak Holdings are divesting their 100 per cent stake in Greenfield Development for US$57.4 million in cash.
Greenfield Development wholly owns Straits Greenfield, which has the right to build and operate a hotel in Myanmar.
The consideration of US$57.4 million exceeds Greenfield Development’s net asset value of US$43.9 million as at end-February 2023, said Keppel Corporation (Keppel Corp) on Monday (Mar 6).
The group added that its property arm’s divestment is in line with Keppel Corp’s asset monetisation plans to unlock capital, which can be channelled towards new growth opportunities.
The divestment is expected to be completed by H1 of 2023, after which both Greenfield Development and Straits Greenfield will no longer be subsidiaries of Keppel Corp.
It is not expected to have a material impact on Keppel Corp’s net tangible assets per share, nor earnings per share, for the current financial year.
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Shares of Keppel Corp closed Friday, S$0.03 or 06 per cent higher at S$5.46.
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