Keppel unit terminates US$98.6 million divestment

KEPPEL Corporation announced on Friday (May 12) that its subsidiary Keppel Land has terminated the agreement to divest its 100 per cent equity interest in Flemmington Investments.

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

The proposed divestment was first announced on Mar 14, 2022. 

At that time, Keppel said the purchaser was intending to buy the sale shares for US$53.1 million as consideration of the shares and US$45.5 million as repayment of shareholder’s loans. The amounts were expected to be paid fully in cash upon the sale’s completion.

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

On Friday, Keppel said Keppel Land, the purchaser and the relevant parties have agreed to end the definitive agreements which have been signed in relation to the divestment, without stating any reasons for the termination.

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Keppel, however, said the termination is not expected to have any material impact on the net tangible assets per share or earnings per share of the company for the current financial year.  

Keppel shares closed 0.5 per cent or S$0.03 lower at S$6.40 on Friday, before the announcement.