Keppel subsidiary to sell remaining stake in Philippines property for 8 billion pesos

KEPPEL Corporation on Monday (Mar 27) said its Philippines subsidiary will divest its remaining interests in The Podium West Tower and The Podium Mall in Manila.

The subsidiary, Keppel Philippines Properties, and Opon-KE Properties will sell their 50 per cent interest in SM Keppel Land, which owns the property, for around eight billion pesos (S$195 million) in cash. Keppel Philippines Properties has a 78.4 per cent effective interest in Opon-KE Properties.

The buyer, BDO Unibank, holds the other 50 per cent in SM Keppel Land

Keppel Corp said the price consideration takes into account the agreed value of the property, and is higher than the sale shares’ net asset value of 3.39 billion pesos as at Dec 31, 2022. It expects the deal to be completed by the first half of 2023, subject to meeting conditions such as obtaining regulatory approval and the approval of Keppel Philippines Properties and Opon-KE Properties shareholders.

The group said the divestment is in line with its Vision 2023 asset monetisation plans to unlock capital, which may be used for new growth opportunities. It does not expect the transaction to have any material impact on the group’s net tangible assets or earnings per share for the current financial year.

Keppel shares closed 1.1 per cent or S$0.06 lower at S$5.40 on Friday.