Keppel to divest subsidiary for US$98.6m

KEPPEL Corporation said on Monday (Mar 14) that Keppel Land is divesting its 100 per cent stake in Flemmington Investments for a total of around US$98.6 million.

In a bourse filing, Keppel said the purchaser will acquire Flemmington for US$53.1 million as consideration for the shares, and US$45.5 million as repayment of shareholder's loans. These will be paid in cash upon completion of the divestment, which is subject to entry into further definitive agreements and necessary approval.

Flemmington holds a 42 per cent stake in a project company, which holds the rights to develop a 30 hectare site in Ho Chi Minh City, Vietnam.

Keppel said the divestment is in line with its Visison 2030 asset monetisation plans to unlock capital, which can be channelled towards new growth opportunities.

Including the latest divestment, Keppel has announced around S$3.1 billion of asset monetisation since the launch of the asset monetisation programme in Sep 2020.

Keppel does not expect the divestment to have any material impact on the net tangible assets per share or earnings per share of the company for the current financial year.

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The counter fell 0.3 per cent on Monday to close at S$6.11, before the announcement.