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Tee International to sell 28% stake in Tee Land for S$18.7m

ENGINEERING group Tee International will sell a 28 per cent stake in its subsidiary property developer Tee Land for nearly S$18.7 million, going by a sale-and-purchase agreement inked on Friday with Top Capital Securities.

Tee International is selling nearly 100.5 million shares at S$0.186 each in cash.

The consideration represents a premium of 5.62 per cent to the volume-weighted average price of S$0.176 on Thursday.

The net sale proceeds of S$18.22 million will represent a loss of approximately S$14.76 million over the book value of the sale shares as at Feb 28 this year of about S$32.98 million.

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The sale completion will also result in an accounting loss on disposal of approximately S$17.62 million and a revaluation loss of approximately S$7.03 million (assuming the value of each Tee Land share is S$0.186) on the remaining Tee Land shares held by the company as at Feb 28 this year.

Tee International intends to use the net sale proceeds to repay loan/bank borrowings and for general working capital purposes.

The sale completion is expected to take place on May 15. 

Tee Land and Tee International have requested their trading halt to be lifted on Friday night.