Keppel Corporation is allowed to proceed with a planned 2.9 billion yuan (S$590 million) disposal of its stake in a China marina project, after a minority shareholder of the project attempted to block the sale through legal proceedings in Singapore.
Last Friday, Keppel Corp announced that the High Court had dismissed Sunsea Yacht Club (Hong Kong) Company Limited's summons for interim relief against Keppel's wholly owned subsidiary Keppel Land China Ltd (KLCL) and KLCL's fully owned unit Keppel China Marina Holdings (KCMH).
The costs will be awarded to KLC and KCMH.
KCMH owns 80 per cent of a joint venture that owns and is developing Keppel Cove, a residential and marina development in Zhongshan city in China, with Sunsea owning the remaining 20 per cent.
KLC had signed an agreement in October to divest its entire stake in KCMH to Delight Prime, a unit of Hong Kong-listed Logan Property, for 2.9 billion yuan.
If the deal goes through, KLC would be able to recognise a gain of about $290 million from the divestment.
Keppel Corp closed eight cents lower at $7.53 last Friday.
Correction note: A previous version of this story said that the High Court had dismissed Sunsea Yacht Club (Hong Kong) Company Limited's writs of summons against Keppel's wholly owned subsidiary Keppel Land China Ltd (KLCL) and KLCL's fully owned unit Keppel China Marina Holdings (KCMH). It should be the summons for interim relief, instead of writs of summons.
